A B C

1
2 CVP
3 Cost-Volume-Profit Analysis
4
5 Data Section
6
7 Fixed Variable
8 Production costs
9 Direct materials $4.30
10 Direct labor 4.70
11 Factory overhead $225,000 3.00
12 Selling expenses
13 Sales salaries & commissions 97,000 0.75
14 Advertising 47,500
15 Miscellaneous selling expense 16,200
16 General expenses
17 Office salaries 87,000
18 Supplies 12,300 1.25
19 Miscellaneous general expense 15,000
20 $500,000 $14.00
21
22 Projected unit sales 90,000
23 Selling price per unit $20.00
24 Target net income $200,000
25
26 Answer Section
27
28 Contribution margin per unit FORMULA1
29 Contribution margin ratio FORMULA2
30
31 Break-even point (units) FORMULA3
32 Target net income (units needed to achieve) FORMULA4
33
34 Break-even point (sales dollars) FORMULA5
35 Target net income (sales dollars needed to achieve) FORMULA6
36
37 Projected net income FORMULA7
38
 C-V-P GRAPH

$3,500,000

$3,000,000

$2,500,000
A
$2,000,000 B
C
$1,500,000

$1,000,000

$500,000

$0
0 40,000 80,000 120,000 160,000

Sales Volume (units)

Chart
Data Table
Units Sales V. Costs F. Costs T. Costs
0 0 0 500000 500000
40,000 800000 560000 500000 1060000
80,000 1600000 1120000 500000 1620000
120,000 2400000 1680000 500000 2180000
160,000 3200000 2240000 500000 2740000