wk 5-Cost-Volume Profit Analysis_work shown.xlsx - Cost-Volume-Profit Analysis Provided information Additional Fixed Costs Current Fixed Cost Price

# wk 5-Cost-Volume Profit Analysis_work shown.xlsx -...

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Cost-Volume-Profit Analysis Provided information: Additional Fixed Costs \$24,000 Current Fixed Cost \$270,000 Price Decrease 5% Current Sale Price \$40 New Sales Price \$38.00 Increase in Sales 20% Current Sales Volume 20,000 New Sales Volume 24,000 Variable Costs \$24 Compute the current break-even point in units Current break-even point Current Sale Price \$40 Variable Cost \$24 Contribution Margin (CM) \$16 Fixed Cost \$270,000 Break-even point in units 16,875 Current Margin of Safety Ratio Break-even point sales 16,875 Budgeted Sales 20,000 Margin of safety 15.63% Break-even point in units = Fixed Cost / Contribution Margin Compute the margin of safety ratio for current operations and a (Round to nearest full percent).

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