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CVP Analysis
Van Otis Chocolates sells boxes of designer chocolates. They had the following information for the year:
Sales (6500 units)$81,250
Variable Expenses ..$52,000
Fixed Expenses.$49,500
Calculate the following (all count as 1 point each):
1. Calculate the UCM (unit contribution margin):
2. Calculate the CMR (contribution margin ratio):
3. Calculate the breakeven point in units:
4. Calculate the breakeven point in sales dollars:
5. Assume they want to earn a profit of $36,000. How many units do they have to sell?
6. What is the margin of safety in units?
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