Question: Specify the break-even points you determined for achieving different target profit levels. Then, explain and defend the target profits you selected for each area of
Specify the break-even points you determined for achieving different target profit levels. Then, explain and defend the target profits you selected for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense.
COLLARS LEASHES HARNESSES Sales Price $ 20.00 $ 22.00 $ 25.00 Fixed Costs $ 4,028 $ 4,028 $ 4,202 Contribution Margin $ 10.90 $ 9.90 $ 10.40 Break-Even Units (round up) 370.00 407.00 404.00 Target Profit $ 300.00 $ 400.00 $ 500.00 Break-Even Units (round up) 397.00 447.00 452.00 Target Profit $ 500.00 $ 600.00 $ 650.00 Break-Even Units (round up) 415.00 413.00 467.00
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