# Cost Volume Profit Analysis

A company sells calculators at $27 each. It has monthly fixed costs of $3800 each and material costs $3 per unit, labour costs of $1 per unit, and other variable costs $10 per unit.

1. What is the breakeven point in sales dollars?

2. What is net income at a level of sales of 350 units?

3. How many units must they sell to earn a monthly profit of $600?

4. What are total costs at breakeven?

5. What are total costs at a sales level of 450 units?

https://brainmass.com/business/business-math/cost-volume-profit-analysis-company-selling-calculators-309758

#### Solution Preview

Variable Cost = Material Cost + Labor + other Variable cost

Variable Cost =3+1+10 = 14

Contribution per unit = Sale price - variable cost = 27 - 14 = ...

#### Solution Summary

The solution performs CVP analysis for a company selling calculators by providing relevant formula's.

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