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  • CVP Formulated

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    Austin Reevu
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    This document shows contribution margin calculations for two scenarios. In the first scenario, variable expenses are $8 per unit, contribution margin per unit is $92, and breakeven is achieved at 13,000 units. In the second scenario, variable expenses are $60 per unit, contribution margin per unit is $40, and breakeven is achieved when sales are $780,000. Both scenarios show fixed expenses of $480,000 and calculate net income before taxes.

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    CVP formulated

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    This document shows contribution margin calculations for two scenarios. In the first scenario, variable expenses are $8 per unit, contribution margin per unit is $92, and breakeven is achieved at 13,000 units. In the second scenario, variable expenses are $60 per unit, contribution margin per unit is $40, and breakeven is achieved when sales are $780,000. Both scenarios show fixed expenses of $480,000 and calculate net income before taxes.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    7 views2 pages

    CVP Formulated

    Uploaded by

    Austin Reevu
    This document shows contribution margin calculations for two scenarios. In the first scenario, variable expenses are $8 per unit, contribution margin per unit is $92, and breakeven is achieved at 13,000 units. In the second scenario, variable expenses are $60 per unit, contribution margin per unit is $40, and breakeven is achieved when sales are $780,000. Both scenarios show fixed expenses of $480,000 and calculate net income before taxes.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Units $ / units Total CM Ratio Contribution Margin

    Sales 13000 100 1300000 100 Breakeven point Unit


    Variable Expense 13000 8 104000 8 Breakeven point $
    Contribution Margin 13000 92 1196000 92 CM per Unit
    Fixed Expense 480000 CM Ratio
    Net Income before taxes 716000

    Units $ / units Total CM Ratio Contribution Margin


    Sales 13000 100 1300000 100 Breakeven point Unit
    Variable Expense 13000 60 780000 60 Breakeven point $
    Contribution Margin 13000 40 520000 40 CM per Unit
    Fixed Expense 480000 CM Ratio
    Net Income before taxes 40000
    1196000
    5217.391
    521739.1 521739.1
    92
    0.92 92

    520000
    12000
    1200000 1200000
    40
    0.4 40

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