Reference no: EM132809730

COST-VOLUME-PROFIT (CVP) ANALYSIS

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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.

Problem 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.)

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

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