Lewis and Clark Company

Cost Volume Profit Analysis

2023

Input Area:
Unit Produced 39,750
Selling Price per Unit $ 10.50
Variable Costs per Unit $ 4.20
Total Fixed Costs $ 35,000.00
Target Profit $ 25,000.00

Impact Area:
Lewis and Clark Company
Contribution Margin Income Statement based units of 39,750
For Period Ending December 2023
Sales $ 417,375
Less: Variable costs 166,950
Contribution Margin 250,425
Fixed costs 35,000
Net Income $ 215,425

Contribution Margin per Unit = Selling Price -

Contribution Margin per Unit = $ 10.50 -

Contribution Margin % = C.M. per Unit /

Contribution Margin % = $ 6.30 /

Determine Breakeven Point in:

Total Fixed Costs
Units =
Contribution Margin

Total Fixed Costs

Dollars =
Contribution Margin %

Units to be sold to have a profit of $25,000

Total Fixed Costs + Desired Profit
Units =
Contribution Margin

Total Fixed Costs + Desired Profit

Dollars =
 Dollars =
Contribution Margin %

Margin of Safety = Target Sales in Units - Breakeven Point in Units

in Units 9,524 -

Margin of Safety % = Margin of Safety in Units /

3,968 /

Verification of analysis of desired profit

Units to be sold to have a profit of $25,000
Sales $ 100,002
Less: Variable costs 40,001 All green highlighted cells should have a
= Contribution margin 60,001 double bottom border. This/These is/are
financial statement total/s.
Less: Fixed Costs 35,000
= Net Income $ 25,001

Created by Shravni Ragoor

11/21/2023 3:03 PM
'file:///conversion/tmp/activity_task_scratch/706535587.xlsx'#$Sheet1
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Variable Costs = C.M. per Unit

$ 4.20 = $ 6.30

Selling Price = Contribution Margin %

$ 10.50 = 60.00%

$ 35,000
= 5,556 Units
$ 6.30

$ 35,000
= $ 58,333 Sales $
60%

$ 60,000.00
= = 9,524
$ 6.30

$ 60,000.00
= = $ 100,000
 = = $ 100,000
60%

Units
5,556 = 3,968

Target Sales in Units

9,524 = 42.00%

ed cells should have a

rder. This/These is/are
nt total/s.