Sales in units Price per unit Variable cost per unit Product 9.000 150 100 Product 13.000 $ 200 $ 130 Totalfred cost Target Profit 400,000 6,000 1) Sales M 34 ON Total $1,950.000 Sales Variable Cost Contribution Margin Product $1,350,000 300,000 5 450,000 Product $ 2.000.000 1.D 5 910.000 Total CM Ratio 1000 55. H. 20.000 51,350,000 Stop Gute the combined 21 Target Profil Total CM Ratio 100 ON 65.6% 5 406,000 34,4N 400.000 5,000 Sales Variable Cost Contribution Marin Fred Cost Net Income 1,171,191 - Step 2: Cute the level of sales regard to the trut 3) Calculation of unit sales Stephaluate the sales for each product Product $ 403015 150 2.687 Product 76176 200 5 181 Divided by price per una Number of units al target profit Target Profit M income tanti Total 450,000 $ 910,000 $ 1,360,000 34.4% Step 1: Calculate the combined CMR 2) 1 Total Sales Variable Cost Contribution Margin Fixed Cost Net Income Target Profit CM Ratio 100.0% 65,6% 406,000 34.4% 400,000 6,000 $ 1,179,191 Stap 2: Cuculate the level of sales required to warn the target $ 6 7 8 3) 9 Product A $ 403,015 Calculation of unit sales Sales Divided by price per unit Number of units at target profit Product $ 776,175 200 $ 3,881 Step 2: Calculate the sales for each product 150 $ 2.687 Target Profit CM Income Statements Total 1 2 3 34 15 36 37 38 39 40 41 42 Sales Variable Cost Contribution Margin Fixed Cost Net Income (TARGET PROFIT) SV Cost Step 4: The proef 450,000 $ 910,000 $ 1,160,000 24% Step 1: Calculate the combined CM Sales Variable Cost Contribution Margin Food Cost Net Income Target Profit Total CM Ratio 100.0% 65.6% $ 405,000 34.4% 400.000 $ 6,000 1.179,191 Step 21 Gaculate the level of sales required to co the target profit 02) 1 2 3 24 25 26 27 28 3) 29 30 31 32 33 Product A 403,015 $ Calculation of unit sales Sales Divided by price per unit Number of units at target profit Product $ 775,175 200 $ 3,881 Stop at Calculate the sales for each product 150 $ 2,687 Target Profit CM Income Statements Total 35 36 37 38 39 Sales Variable Cost Contribution Margin Fixed Cost Net Income (TARGET PROFIT) Step 4. The proatt 40 41 42 43