create a scenario for a business or other organization and use CVP
Question # 00594944
Posted By:
Updated on: 09/26/2017 05:04 AM Due on: 09/26/2017
For this project, you will create a scenario for a business or other organization and use CVP analysis to show the following:
1. Breakeven in units
2. Breakeven in dollars
3. Target sales in units for achieving a $50,000 target NI
4. Target sales in dollars for achieving a $50,000 target NI
5. Calculate what the new sales price should be in order to achieve a $10,000 NI using the breakeven in units (#1 above) for sales volume (Q)
6. Calculate what the variable cost per unit would need to be in order to achieve a $10,000 NI using the breakeven in units (#1 above) for sales volume (Q)
Requirements:
A. Define each CVP variable for your scenario:
SP =
VC =
FC =
B. Calculate:
CM per unit =
CM ratio =
C. Calculate #1 - 6 above, showing all calculations
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Rating:
/5
Solution: create a scenario for a business or other organization and use CVP