Homework Answers
1.
Contribution margin = $40,000 / 2,500 = $16 per unit
2.
December breakeven = $10,000 / $16 = 625 units
January contribution = $16 + $9 = $25
January Fixed cost = $10,000 + $5,000 = $15,000
January breakeven = $15,000 / $25 = 600
25 (625 - 600) fewer units must be sold in January to breakeven.
3.
Units sales = ($30,000 + $15,000) / $25 = 1,800 units
700 (2,500 - 1,800) fewer units must be sold in January to maintain same profit.
4.
December sale to double the profit = ($60,000 + $10,000) / $16 = 4,375
January sales = ($60,000 + $15,000) / $25 = $2,800
1,575 (4,375 - 2,800) fewer units must be sold in January to double the profits.
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Costs
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Gary's Florist
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For the Year Ending December 31, 2017
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Per Unit
Sales
Revenue
Variable
Costs
Contribution Margin
Fixed
Costs
Net
Income
Units
Sold:
Sales Revenue Per Unitt som Variable costs per unit $31 . Fixed Costs $151,875 * Create formulas in the appropriate locations for all remaining elements except Units Soid, which should remain blank. Use Goal Seek to determine the breakeven unit sales. Create a second CVP Analysis tab (named appropriately) and use...
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