Accounting 2102
Farmer
Practice Problems Test 1
gross profit
172,000
You Got It
. . . more CVP practice . . . solve for the unknowns
1.
SR
360,000
(VC)
(120,000
)
CM
%=240,000/360,000=2/3%
CM
240,000
BE
SR=90,000/2/3%=135,000
(FC)
(90,000
)
OP Y
150,000
2.
SR
55,000
CM%=44,000/55,000=80%
(VC)
(11,000
)
BE SR=25,000/80%=31,250
CM
44,000
(FC)
(25,000
)
OP Y
19,000
3.
SR
320,000
80,000=60,000/CM%
(VC)
(80,000
)
CM%=75%
CM
240,000
VC%=25%
(FC)
(60,000
)
25%=80,000/SR
OP Y
180,000
SR=320,000
4.
SR
160,000
160,000=FC/
(30,000/160,000)
(VC)
(130,000
)
FC=30,000
CM
30,000
(FC)
(30,000
)
OP Y

Page 2 of 7
69db1e1c0b2392c4e32683af53a7773def923590.doc
Sales
Revenue
Variable
Expenses
Total
Contribution
Margin
Fixed
Expenses
Net
Income
Break Even
Sales Revenue
1
.
?
120,000
240,000
?
150,000
?
2
.
55,000
11,000
?
?
19,000
?
3
.
?
80,000
?
60,000
?
80,000
4
.
160,000
?
30,000
?
?
160,000