Running Header: CVP ANALYSIS CVP Analysis Student’s Name Institution of Affiliation Course + Code Date CVP ANALYSIS Qn 1 Break Even Units sold = Fixed costs/Contribution Margin Contribution Margin per unit = Selling price - Varible cost per unit C.M Per Unit= 250-150 = 100 $ Selling price 250 Less; Variable cost 150 C.M Per Unit 100 𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡 Break Even = 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑀𝑎𝑟𝑔𝑖𝑛 𝑝𝑒𝑟 𝑈𝑛𝑖𝑡 Break Even = 35,000 100 = 350 units Fixed cost CM Per Unit Break Even Units sold 35,000 100 350 Therefore for Accoustic Concepts Inc. to break even will have to sell 350 units for one month. Qn 2 𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡+𝑇𝑎𝑟𝑔𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 Required Sales =𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑀𝑎𝑟𝑔𝑖𝑛 𝑝𝑒𝑟 𝑈𝑛𝑖𝑡 35,000+1,000 100 Sales = = 360 Therefore The contribution margin per unit in the previous calculation was $ C.M per unit 100.00 Required sales $ Fixed costs 35,000.00 $ Target Profit 1,000.00 $ Total 36,000.00 C.M per unit 100 Required sales 360 For Accoustic Concepts Inc. to make a profit of $ 1,000 they will have to sell 360 units. 2 CVP ANALYSIS Qn 3 Units Sold Sales (S.P * Units sold) Variable Cost($150* Units sold) Contribution Margin Fixed Costs Net Income/(Net Loss) Accoustic Concepts Inc. Income Statement 400 Total Per Unit $ $ 100,000.00 250.00 (60,000.00) 40,000.00 (35 ...
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