1. Fast Buck Inc. sells a product at a unit price of $5.50, with a variable cost of $3.25 per unit. Total fixed costs are $360,000.

a. Calculate the breakeven point.

b. Calculate a 20% increase in volume above breakeven and determine its precise dollar impact on profits.

c. Calculate the effect of a $.50 drop in price and a $.25 rise in variable costs on the breakeven quantity with no change in fixed costs.

Solution Preview

1. Fast Buck Inc. sells a product at a unit price of $5.50, with a variable cost of $3.25 per unit. Total fixed costs are $360,000.

a. Calculate the breakeven point.

Breakeven point is when the total costs are equal to total revenues. we can write that for breakeven
Total Cost = Total Revenue
Variable Cost + Fixed Cost = Total Revenue
Variable Cost X No. of units + Fixed Cost = Selling price per unit X no. of units
Fixed cost = no. of units (selling price per unit - variable ...

Solution Summary

The solution explains the use of Cost Volume Profit relationship to solve to solve the questions.

Calculate the missing amounts for each of the following firms. (Negative amount should be indicated by a minus sign. Do not round your intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)
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I need help in doing a paragraph on "Provide two examples of activities on how an entrepreneur starting a business may benefit by applying CVP Analysis, make sure to perform a what-if analysis in your situation " please assist I need at least 250 to 300 words

When conducting a CVP analysis how it can be helpful in organizational development? How does this tool help you determine pricing and R&D budgets? Consider the concepts of Market Saturation, price elasticity and price-demand relationships.

Please provide a 4-6 page with references regarding the information attached. This information will be used as informative guidance to assist me completing the work prescribed. In particular analyzing and explaining the financials as seen attached.
BACKGROUND
In Module 3, you will continue with the scenario and simulation

I need with this questions.
For what is cost-volume-profit (CVP) analysis used? What are some of the key underlying assumptions that make CVP analysis useful for decision makers? Why might decision makers use CVP analysis?
I need a word count of 200
Thank you,

1. How should mixed costs be classified in CVP analysis? What approach is used to effect the appropriate classification?
2. "Cost-volume-profit (CVP) analysis is based entirely on unit costs." Do you agree? Explain.
3. Linda Fearn asks your help in constructing a CVP graph. Explain to Linda (a) how the break-even point is

Calculate the Selling Price of a New Product; What-If Questions; Break-Even Point
Meyers Corporation has an annual income of $450,000, and average contribution margin ratio of 35%, and fixed expenses of $175,000.
Required:
a). Management is considering adding a new product to the company's product line. The

1. Compute the contribution margin ratio for the rooms department.
2. Compute the Baker Inn's weighted average CMR.
3. Compute the Baker Inn 's breakeven point.
4. If the Baker Inn wants to make $1500000, what must its room sales equal?
5. If the Baker Inn desire a pretax cash flow of $500000, what must its total revenue e