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Ricardo R. Palo
Answer to 5-18
A. S
VC
CM
FC
0+-
Units sold
CM/unit
B.
S
VC
CM
FC
0+-
CM%
Answer 5-11
4
5
wer to 5-18
1 2 3 4 Units CM per Profit
270000 350000 400000 160000 Case Sold Sales VC CM Unit FC (Loss)
162000 140000 280000 90000 1 9000 270000 162000 108000 12 90000 18000
108000 210000 120000 70000 2 14000 350000 140000 210000 15 170000 40000
90000 170000 85000 82000 3 20000 400000 280000 120000 6 85000 35000
18000 40000 35000 -12000 4 5000 160000 90000 70000 14 82000 -12000
1 2 3 4 Ave CM Profit
450000 200000 700000 300000 Case Sales VC CM % FC (Loss)
270000 130000 140000 90000 1 450000 270000 180000 0.40 115000 65000
180000 70000 560000 210000 2 200000 130000 70000 0.35 60000 10000
115000 60000 470000 225000 3 700000 140000 560000 0.80 470000 90000
65000 10000 90000 -15000 4 300000 90000 210000 0.70 225000 -15000
1 2 3
Units Per Unit % 12500 14000
Sales 40 1.00 500000
VC 28 0.70
CM 12 0.30 150000 150000 168000
FC 150000 150000
0+- 0 18000
Sales 600000
Break-even sales 500000
Margin of Safety 100000
Units 80000
Sales
VC
CM 24000
FC 0
0+- 24000