RECOMMENDED!!ACTG3000 Project 4

  

Project 4 – 16 points
ACTG3000

For
this project, you will create a
scenario for a business or other organization and use CVP analysis to show the
following:

1. Breakeven
in units
2. Breakeven
in dollars
3. Target
sales in units for achieving a $50,000 target NI
4. Target
sales in dollars for achieving a $50,000 target NI
5. You
realize that your scenario’s actual capacity is limited to its breakeven number
of units (BEu, as calculated in #1 above). Calculate what the new sales price (SP) should be in order
to achieve a $10,000 NI using the BEu (#1 above) for sales volume (Q).
6. Same
as #5, except this time calculate what the new
variable cost per unit (VC) would need to be in order to achieve a $10,000 NI
using the BEu (#1 above) for sales volume (Q).

Requirements:
A. Define
each CVP variable for your scenario:

SP =

VC =

FC =

B. Calculate:

CM per unit =

CM ratio =

C. Calculate
#1 – 6 above, showing all calculations