Mega Furniture Company

Cost volume profit analysis

Year:2024

Fixed Cost:
Utilities(Including Electricity ) 220,000.00
Maintenance 16,000.00
Rent 200,000.00
Depreciation expenses 40,000.00

Salaries to administrative personne 880,000.00

Salaries to sales personnel 360,000.00
Advertising 120,000.00
Computer operator salaries 80,000.00
Other administrative expenses 44,000.00
Commissions 472,500.00
Total Fixed Cost 2,432,500.00

Unit cost(Manufacturing cost per unit )

Direct Material cost per unit 56.43
The direct Labor Cost per unit 56.00
Manufacturing overhead cost per unit 36.46
148.89

Unit variable cost

The total variable cost/ Unist tobe produced= 132.18

Break even ponit in (in unit)= 6,613.23 2,432,500.00

Fixes cost/ Unit contribution margin(UCM) 367.82

Unit contribution margin = 367.82 $ 500.00

Unit sales price - unit variable cost 132.18

Break even sales revenue = 3,306,613.68

Break even point in units x Price

Units to be sold to obtain a target net profit of $3,100,000

Unit to obtein the TNP= Fixed Cost + Target net proft/ UCM
Unit to obtein the TNP= 2,432,500.00 +
Unit to obtein the TNP= 15,041 Units
Contribution income statement to prove the target net profit
Units Sold Sales Revenue Total Variable Co
15,041.18 7,520,592 1,988,092.06
Variable Cost
Direct Material 1,117,296.00
Direct labor 1,108,800.00
Indirect Material 82,000.00
Indirect Labor 120,000.00
Uncollectible 189,000.00
Total Variable cost 2,617,096.00

Mega Furniture Company

Conribution income statment 2024

Sales Revenue 3,306,613.68

Total Variable Cost 874,113.68
Contribution Margin 2,432,500.00
Fixed Cost 2,432,500.00
Profit 0.00

$ 3,100,000.00 / 367.82

Contribution Fixed Cost Target Net Profit

5,532,500.00 2,432,500.00 3,100,000.00