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MANAGERIAL ACCOUNTING PROBLEMS

Please answer ALL IN DETAILS to get UPVOTE

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Question 1: CVP relation Sales volume in units 100 $8,000 $7,000 Contribution margin $1,000 Revenue Variable costs Fixed costs $600 Profit $400 a) Compute the following items: price- unit VC unit CM b) Write down the CVP relation. Profit (e.g., if Profit 4*volume-1000, enter 4 in the first box and 1000 in the second box) * volume - c) Predict profit at sales volume of 120 units: d) Your boss gave you a profit target of $700. How many units do you need to sell to meet this target? e) Compute the breakeven point: breakeven volume = breakeven revenue f) Compute the margin of safety at current sales volume of 100 units: (e.g., if your answer is 20%, enter 20 without the % sign) If sales decrease by 35%, will you lose money? O YES NO If sales decrease by 45%, will you lose money? OYES O NO g) When sales volume increases by 10 units (from any initial level in the relevant range), profit increases by: not enough information price 10 $800 unit VC* 10-$700 unit CM * 10-$100