Question: *****ONLY #4 NEEDS ANSWERING, BASED OFF #1, 2, AND 3****** 1. Complete the Cost Volume Profit Income Statement for sales of 20,000 units. Revenue 150
*****ONLY #4 NEEDS ANSWERING, BASED OFF #1, 2, AND 3******
1. Complete the Cost Volume Profit Income Statement for sales of 20,000 units.
| Revenue
|
| 150 |
| Less Variable Cost
|
| 50 |
| Contribution Margin
|
|
|
| Less Fixed Cost
| 1,000,000 |
|
| Net Income
|
|
|
What is the UCM? _____________________
b. What is the total Variable cost? _________________________
2. Complete the Cost Volume Profit Income Statement at the Break Even Point.
| Revenue
|
| 150 |
| Less Variable Cost
|
| 50 |
| Contribution Margin
|
|
|
| Less Fixed Cost
| 1,000,000 |
|
| Net Income
|
|
|
What is the number of units required to break even? _____________________
What is the revenue at the Break even Point? ______________________________
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3. Complete the Cost Volume Profit Income Statement for target profit of $ 100,000
| Revenue
|
| 150 |
| Less Variable Cost
|
| 50
|
| Contribution Margin
|
|
|
| Less Fixed Cost
| 1,000,000 |
|
| Net Income
|
|
|
How many units must be sold to achieve a $100,000 profit?_____________________
What is the Total Variable Cost ?______________________
What is the total Revenue? ____________________________
4. Complete the Cost Volume Profit Income Statement at the break even point.
Assume fixed costs will increase by $100,000
Assume Variable costs will increase by $25
| Revenue
|
|
|
| Less Variable Cost
|
|
|
| Contribution Margin
|
|
|
| Less Fixed Cost
|
|
|
| Net Income
|
|
|
How many units are required to break even?__________________
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