MBA570 - Team Assignment - Contribution Income Analysis - 07-29-06

# MBA570 - Team Assignment - Contribution Income Analysis - 07-29-06

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Exercising More than Just Your Body Contribution Income Analysis - Pro Forma 2006 Price Per Unit \$23.67 Based on 2006 Sales Forecast Average Number of Units Sold 1,000 Total Sales \$23,667 100% Less: Variable Production Costs, if any \$- 0% Less: Variable Selling Costs \$3,000 13% Total Variable Costs \$3,000 13% \$3.00 Per Unit Contribution Margin \$20,667 87% Less: Fixed Production Costs, if any \$- 0% Less: Fixed Selling and Administrative Costs \$26,000 110% Total Fixed Costs \$26,000 110% \$26.00 Per Unit Income Before Taxes \$(5,333) -23% \$(5.33) Per Unit Break-Even Analysis Chart Break-Even Point (units) = 1,258 Break-Even Point (\$'s) = \$29,774 Total Fixed Costs TFC = \$26,000 Formulas: Variable Cost per Unit VCU = \$3.00 BEP (units) = TFC / (SPU - VCU) Sales Price per Unit SPU = \$23.67 BEP (\$'s) = BEP (units) * SPU 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 4400 4800 5200 5600 6000 6400 6800 7200 7600 8000 8400 8800 9200 9600 10000 10400 10800 11200 (\$50,000)

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## This note was uploaded on 06/12/2011 for the course ETHICS mba taught by Professor Wilkes during the Spring '05 term at University of Phoenix.

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MBA570 - Team Assignment - Contribution Income Analysis - 07-29-06

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