Question 2: CVP relation version 2 Current sales revenue is $5,000, total variable costs are $4,000, and total fixed costs are $3,000 (no data on units). a) Compute the contribution margin ratio: CMR= b) Write down the CVP relation (version 2): profit as a function of sales revenue. Profit = ___________* Revenue - __________

(e.g., if profit = 0.1*Revenue-500, enter 0.1 in the first box and 500 in the second box). c) Predict profit at sales revenue of $10,000: d) Your boss gave you a profit target of $5,000. How much do you need to sell in dollars to meet this target? e) Compute the breakeven revenue: f) When sales revenue increases by $1,000 (from any initial level in the relevant range), profit increases by:

CMR*$1,000 = $200

(1-CMR)*$1,000 = $800

not enough information