A firm manufactures a product that sells for $640 per unit. Variable cost per unit is $360 and fixed cost per month is $26,880. Capacity is 150 units per period. a. How much is the contribution margin? b. How much is the contribution rate? c. How many units must they sell in order to break even? d. Determine the break-even point if fixed cost is increased to $32,200. e. Determine the break-even point as a percent of capacity if fixed cost is reduced to $23,808, while unit variable cost is increased to 60% of unit price.

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Q: Please fill out this chart with

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Cost volume profit (CVP) analysis

CVP analysis is a cost-volume-profit technique of cost accounting that examines the influence of varying levels of expenses and volume on operating profit. Cost Volume Profit analysis determines the relationship between Cost, Sale Volume, sales price, and Profit. CVP analysis is also known as break-even analysis which helps the business organization, banks, and their management to determine and forecast how a change in total sales and cost affects the profit of the organization. CVP analysis helps in financial decision-making for the budget, expense, tax, market investment, and corporate finance and aims at measuring variations in cost and volume.