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CVP Analysis Door Décor, Inc. sells designer door ornaments. They had the following information for the...

CVP Analysis

Door Décor, Inc. sells designer door ornaments. They had the following information for the year:

         Sales (9000 units)……………………$85,500

         Variable Expenses ………………….$49,500

         Fixed Expenses………………….……$54,000

Calculate the following (all count as 1 point each):

1. Calculate the UCM (unit contribution margin):

2. Calculate the CMR (contribution margin ratio):

3. Calculate the breakeven point in units:

4. Calculate the breakeven point in sales dollars:

5. Assume they want to earn a profit of $24,000. How many units do they have to sell?

6. What is the margin of safety in units?

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