Question 2: CVP relation version 2 Current sales revenue is $5,000, total variable costs are $1,000, and total fixed costs are $1,000 (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. *Revenue- Profit = (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 $1,000 (from any initial level in the relevant range), profit increases by: O not enough information i (1-CMR)*$ 1,000= $200 CMR-$1,000 $800