Total Per Unit Revenue $ 480,000 $ 30.00 Variable expenses 208,000 13.00 Contribution margin 272,000 $ 17.00 Fixed expenses 216,000 Operating income $ 56,000 1. What is the monthly break-even point in units and in sales dollars? 2. What is the total contribution margin at breakeven? A Computation is not required for this. 3.How many units would have to be sold each month to earn a target profit of $104,000? Prepare a contribution margin format income statement to prove your answer
| Total | Per Unit | |
| Revenue | $ 480,000 | $ 30.00 |
| Variable expenses | 208,000 | 13.00 |
| Contribution margin | 272,000 | $ 17.00 |
| Fixed expenses | 216,000 | |
| Operating income | $ 56,000 |
1. What is the monthly break-even point in units and in sales dollars?
2. What is the total contribution margin at breakeven? A Computation is not required for this.
3.How many units would have to be sold each month to earn a target profit of $104,000? Prepare a contribution margin format income statement to prove your answer.
4.Redo part 3 but now assume a tax rate of 30%. How many units need to be sold each month to achieve an after-tax profit of $95,000?
5. Based on the original data supplied above, what is CVC's current margin of safety in both dollar and percentage terms?
6.If CVC increased sales by $50,000 per month and there is no change in total fixed expenses and variable expenses per unit, what should operate income increase by?
7.If sales were to increase by 15% what should operating income increase by (again no change in total fixed expenses and variable costs per unit)? Use operating leverage to answer this question.
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