Reference no: EM132792988

Question - COST-VOLUME-PROFIT (CVP) ANALYSIS

In order to receive full credit, you must show all of your work/calculations. Indicate your final answer (bold, italics, underlined, different color, boxed, etc.). For the first question only, you can check to see if your answer is correct.

Based on budgeted information for 2020, the company estimates that the variable cost per unit will be $35, and total fixed costs will be $150,000.

Required -

1. Calculate breakeven point in units for 2020, based on the budgeted information given above. (You will also need the sales price used when preparing the master budget.)

2. Calculate how many units the company would need to sell to reach a target profit of $300,000.

3. Calculate breakeven point in units for 2020 if the company increases the sales price per knife to $80.