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? 100
b. What is the total Variable cost? 1,000,000
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? 10,000 units
- What is the revenue at the Break even Point? 1,500,000
Show Work Here:
- = Fixed costs/contribution marign
= 1,000,000/100
= 10,000 units
- = fixed costs/ contribution margin ratio
= 1,000,000/66.67%
=1,500,000
3. Complete the Cost Volume Profit Income Statement for target profit of $ 100,000
| Revenue
|
| 150 |
| Less Variable Cost
|
| 50
|
| Contribution Margin
|
| 100 |
| Less Fixed Cost
| 1,000,000 |
|
| Net Income
|
|
|
- How many units must be sold to achieve a $100,000 profit?_11,000 units
- What is the Total Variable Cost ?_$550,000
- What is the total Revenue? $1,650,000
- 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?__________________
Show work here:
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