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Refer to the following data and description, 1. calculate the break even points in both unit sales and dollar sales in Excel; 2. list all the five parameters from the CVP analysis for any kind of business; 3. assume now the actual sales is below the break even point. use CVP model to explain a few options to improve the business performance. -------------------------------------- The Company prepared the following income statement with the sales volume of 1,000 units (the production range/capacity is 500 to 1,500 units) sales 20,000 variable cost 12,000 margin 8,000 fixed cost 6,000 net profit 2,000

Refer to the following data and description, 1. calculate the break even points in both unit sales and dollar sales in Excel; 2. list all the five parameters from the CVP analysis for any kind of business; 3. assume now the actual sales is below the break even point. use CVP model to explain a few options to improve the business performance. -------------------------------------- The Company prepared the following income statement with the sales volume of 1,000 units (the production range/capacity is 500 to 1,500 units) sales 20,000 variable cost 12,000 margin 8,000 fixed cost 6,000 net profit 2,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Refer to the following data and description,

1. calculate the break even points in both unit sales and dollar sales in Excel;

2. list all the five parameters from the CVP analysis for any kind of business;

3. assume now the actual sales is below the break even point. use CVP model to explain a few options to improve the business performance.

--------------------------------------

The Company prepared the following income statement with the sales volume of 1,000 units (the production range/capacity is 500 to 1,500 units)

sales 20,000

variable cost 12,000

margin 8,000

fixed cost 6,000

net profit 2,000

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