The following is the CVP diagram for Happy Hoppy Toy Store, a toy shop that sells...

 

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The following is the CVP diagram for Happy Hoppy Toy Store, a toy shop that sells mostly big Hippo Toys Cost-Volume-Profit Analysis for HH Toy Store Revenue/Costs €35.000,00 (a) (b) (c) (d) (e) € 30.000,00 €25.000,00 €20,000,00 € 15.000.00 € 10,000,00 €5,000,00 € S- 0 100 Level 2-A bit challenging 150 REQUIRED: Study the above information and answer the following questions. Level 1-Straightforward Level (a) (b) (c) (d) (e) 200 250 Calculate the variable cost per unit. Show the Total Variable Cost curve on the diagram above. Calculate the contribution margin per unit. TR TC Show the breakeven point on the graph above. State the Euro amount of sales is required to achieve breakeven. If the business sold 200 units of toys. Show the Margin of Safety on the graph above. Calculate the contribution margin at breakeven point. Explain why the Fixed Cost curve shows a straight line. State the units of sales are required for achieving €10,000 profit. Calculate the sales amount (in Euro) is required for achieving €25,000 profit. FC 300 Units The following is the CVP diagram for Happy Hoppy Toy Store, a toy shop that sells mostly big Hippo Toys Cost-Volume-Profit Analysis for HH Toy Store Revenue/Costs €35.000,00 (a) (b) (c) (d) (e) € 30.000,00 €25.000,00 €20,000,00 € 15.000.00 € 10,000,00 €5,000,00 € S- 0 100 Level 2-A bit challenging 150 REQUIRED: Study the above information and answer the following questions. Level 1-Straightforward Level (a) (b) (c) (d) (e) 200 250 Calculate the variable cost per unit. Show the Total Variable Cost curve on the diagram above. Calculate the contribution margin per unit. TR TC Show the breakeven point on the graph above. State the Euro amount of sales is required to achieve breakeven. If the business sold 200 units of toys. Show the Margin of Safety on the graph above. Calculate the contribution margin at breakeven point. Explain why the Fixed Cost curve shows a straight line. State the units of sales are required for achieving €10,000 profit. Calculate the sales amount (in Euro) is required for achieving €25,000 profit. FC 300 Units

Answer rating: 100% (QA)

lets refer to the given CostVolumeProfit CVP diagram for Happy Hoppy Toy Store a To show the breakeven point on the graph we locate the point where th... View the full answer