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?
Get Answers For Free
Most questions answered within 1 hours.