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CVP Analysis; Break-even point (2pts): Diagram, Inc., produces and sells a single product whose selling price is $240.00 per unit and whose variable expense is $72.00 per unit. The company's fixed expense is $372,960 per month.

Determine the monthly break-even in:

a) unit sales volume

b) total dollar sales

CVP Analysis; Target Profit (2pts): L. Gott Corporation produces and sells a single product. Data concerning that product appear below:

Selling price per unit	$	230.00
Variable expense per unit	$	103.50
Fixed expense per month	$	518,650

a. Assume the company's monthly target profit is $12,650. Determine the unit sales to attain that target profit.

b. Assume the company's monthly target profit is $63,250. Determine the dollar sales to attain that target profit.

CVP Analysis (2pts) Hunter Corporation produces and sells a single product. Data concerning that product appear below:

	Per Unit			Percent of Sales
Selling price	$	100			100	%
Variable expenses		30			30	%
Contribution margin	$	70			70	%

Fixed expenses are $234,000 per month. The company is currently selling 4,000 units per month.

Management is considering using a new component that would increase the unit variable cost by $7. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected?

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