Reference no: EM132639346
Question - Using the formula, perform the CVP analysis of Sportz Watch:
Forecast sales volume (units) 12 000
Sales price (per unit) $150
Variable cost (per unit) $120
Fixed costs $300 000
Total assets $750 000
Target return on assets 20%
Required - From this information calculate the following:
Contribution margin (CM):
Contribution margin per unit (CMU)
Contribution margin ratio (CMR)
Break-even point in units (BPU)
Break-even point in dollars (BP$)
Estimated profit
Target profit
Units to achieve target profit
Revenue to achieve desired profit