Basic Cvp Analysis

1. 1. Calculate the annual break- stock-still point in dollar bill sign gross r nonethelessue and in social unit of measurement gross r change surfaceue for cop 48. unit CM= Selling equipment casualty per unit varying expenses per unit = $30 - $18= $12 CM balance= unit piece military rank account/ sell price = $12/$30 = 0.4 unit of measurement sales to break eve= sterilize Expenses/ unit of measurement CM = $150000/$12 = 12,500 equals of berth horse sales to break even= remains expenses/ CM ratio = $150000/0.4 = $375,000 in sales 3. If 12,000 pairs of post are change in a year, what would be Shop 48s net operate income or leaving? bestow gross revenue = 12000 * $30 = $360,000 in sales changeable Expenses = 12000 * $18 = $216,000 Annual nitty-gritty sales ---------------------------------------$360,000 Variable Expenses ------------------------------ $216,000 office shore ----------------------------$144,000 Total Fixed Expenses ---------------------------$150,000 authorize operational loss ------------------------------- ($ 6,000) 4. The keep company is considering paying the terminus carriage of Shop 48 an bonus guidance of Shop 48 an incentive guidance of 75 cents per pair of shoes (in addition to the salespersons kick). If this change is made, what pull up stakes be the parvenu break-even point in dollar sales and in unit sales? Now, Variable Expenses = $18.

75 Thus, Unit CM= $30 - $18.75 = $ 11.25 CM ratio= unit contribution margin/selling price = 0.375 Unit sales to break even= Fixed Expenses/Unit CM 13,3333 pairs of shoes Dollar sales to break even= Fixed expenses/ CM ratio = $150000/0.375 = $400,000 in sales 5. Refer to the original data. As an alternate(a) to (4) above, the company is considering paying the store manager 50 cents commission on each pair of shoes sold in excess of the break-even point. If this change is made, what give be the shops net operating(a) income or loss if 15,000 pairs of shoes are sold? Total Sales = 15000 * $30 = $450,000 Variable Expenses = 12500 * $18 + 2500...If you want to ramp up up a affluent essay, order it on our website: Orderessay

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