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Compute how many units must be sold to breakeven

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Reference no: EM132534204

Sunshine Inc,. Sells a single product. The company's most recent income statement is given below.

Sales (4, 000 units) $120, 000

Less variable expenses (68, 000)

Contibution margin 52, 000

Less fixed expenses (40, 000)

Net income $12, 000

Required:

Question A. Calculate the contribution margin per unit.

Question B. Calculate the total variable cost if sales are doubled to $240, 000

Question C. What will total fixed costs equal if sales are doubled to $240?

Question D. If Sunshine is past the breakeven point and 10 more units are sold, how much will profits increase by?

Question E. Compute how many units must be sold to breakeven.

Question F. Compute how many units must be sold to achieve a profit of $20, 000

Question G. Define the term CVP analysis

Question H. List and explain 2 assumptions of CVP analysis

Question I. List and explain 2 limitations of CVP analysis

Reference no: EM132534204

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