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  • 2.2.2 CVP Analysis A2A

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    David Faraon
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    The document shows financial information for a company across 5 scenarios, including sales, variable costs, contribution margin, fixed costs and net income. In the first scenario, net income is $240,000 with $500,000 in sales. Increasing sales to $550,000 in the second scenario raises net income to $270,000, an increase of $30,000. In the fifth scenario, net income is $252,000 with $520,000 in sales, an increase of $12,000 over the first scenario.

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    Costcram

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    The document shows financial information for a company across 5 scenarios, including sales, variable costs, contribution margin, fixed costs and net income. In the first scenario, net income is $240,000 with $500,000 in sales. Increasing sales to $550,000 in the second scenario raises net income to $270,000, an increase of $30,000. In the fifth scenario, net income is $252,000 with $520,000 in sales, an increase of $12,000 over the first scenario.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    3 views1 page

    2.2.2 CVP Analysis A2A

    Uploaded by

    David Faraon
    The document shows financial information for a company across 5 scenarios, including sales, variable costs, contribution margin, fixed costs and net income. In the first scenario, net income is $240,000 with $500,000 in sales. Increasing sales to $550,000 in the second scenario raises net income to $270,000, an increase of $30,000. In the fifth scenario, net income is $252,000 with $520,000 in sales, an increase of $12,000 over the first scenario.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 1

    1.

    Net Income
    Sales price 100*5000 500,000
    VC 40*5000 200,000
    CM 300,000
    FC 60000
    Net Income 240,000

    2. Sales unit- Var. Cost unit


    100
    40
    60 CM unit

    3. CMU/Sales per unit


    60/100
    0.60

    4. Sales price 100*5500 550,000


    VC 40*5500 220,000
    CM 330,000
    FC 60000
    Net Income 270,000

    Sales 550,000 270,000


    Sales 500,000 -240000
    30,000 increased in net income

    5. Sales 100*5200 520,000


    VC 40*5200 208,000
    CM 312,000
    FC 60,000
    Net Income 252,000

    Sales 500,000 252,000


    Sales 520,000 240,000
    12,000 increase in net income

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