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# Basic CVP Relationships

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The spreadsheet is attached. I need to find the value of the ?s. I am using the following equation to fill in the blanks:

Sales Revenue - Variable Expenses = Total Contribution Margin
Total Contribution Margin - Fixed Expenses = Net Profit

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#### Solution Preview

Please find the answers attached.

Sales Revenue Variable Expenses Total Contribution Margin Fixed Expenses Net Income Break-Even Sales Revenue
160000 \$40,000 \$120,000 \$30,000 \$90,000 \$40,000
\$80,000 \$65,000 \$15,000 15000 0 \$80,000
\$120,000 \$40,000 \$80,000 \$30,000 \$50,000 45000
\$110,000 \$22,000 \$88,000 ...

#### Solution Summary

This solution provides calculations in Excel for total contribution margin and net profit.

\$2.19