I got the first 4 steps done. Just need to know what formulas from the data
to use for steps 5,6, and 7.
as you said you are done till step 4
so continuing from Step 5 and only the formulas so.
Breakeven: Fixed cost divide by sale price of per unit. which gives sales qty breakeven than we can calculate the breakeven of sales in amount.
Margin of safety is sales above the break even point.
TArget point is the actual target kept for the year.
Given an example :
Total break even margin of safety
Sales 100
Less variable cost 40
Contribution 60
Less fixed cost (per unit) 20 0#
Profit 40 0*
* because at break even there is no profit.
# Because at margin of safety level, Fixed cost is always zero.
so with this concept you can find out all the percentage also, Take total sales to 100 and then find out the other Break even sales percentage and margin of safety percentage.
Toatal sales = Break even sales + Margin of safety sales.
I got the first 4 steps done. Just need to know what formulas from the data...
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CVP Modeling project The purpose of this project is to give you experience creating a multiproduct profitability analysis that can be used to determine the effects of changing business conditions on the client's financial position. Your goal will be to use Excel in such a way that any changes to the assumptions will correctly ripple through the entire profitability analysis. If executed properly, the client should be able to use this spreadsheet over and over, using different "what if" assumptions....
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Only Answer Exercise 2 and 3 please. After completing Exercise 2, What is the number of units needed to achieve the desired profit? After completing Exercise 3- situation 1, what is the number of units needed to achieve the desired profit? See circle on the photos below for exercise 2 and 3 Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per...
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I need assistance with requirements 3,4 and 5, please. The contribution margin income statement of Unique Donuts for August 2018 follows: E: (Click the icon to view the contribution margin income statement.) Unique sells four dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4.00, with total variable cost of $1.60 per dozen. A dozen custard-filled donuts sells for $7.00, with total variable cost of $2.80 per dozen. Read the requirements. Data Table Requirement 1....