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# CVP Analysis for a nonprofit, Mount Company, and Blank Co

1. A nonprofit organization aids the unemployed by supplementing their incomes by \$3,200 annually, while they seek new employment skills. The organization has fixed cost of \$240,000 and the budgeted appropriation for the year totals \$800,000. How many individuals can receive financial assistance this year?

2. Mount Company sells only two products - A and B
Selling price - Product A-\$40, Product B-\$50
Variable cost per unit - Product A-\$24, Product B-\$40
Total fixed cost is \$840,000.
Mount sells two units of Product A for each unit it sells of Product B. Mount faces a tax rate of 30%. Mount desires a net after-tax income of \$73,500.What the breakeven point in units would be?

3.Blank Co sells a single product. The company's most recent income statement is given below.
Sales \$200,000
Less variable expenses (\$120,000)
Contribution margin \$80,000
Less fixed expenses \$(50,000)
Net Income \$30,000
Required:
a. Contribution margin ratio is ......
b. Breakeven point in total sales dollars is ...
c. To achieve \$40,000 in net income, sales must total .....
d. If sales increase by \$50,000, net income will increase by .....

#### Solution Preview

1. A nonprofit organization aids the unemployed by supplementing their incomes by \$3,200 annually, while they seek new employment skills. The organization has fixed cost of \$240,000 and the budgeted appropriation for the year totals \$800,000. How many individuals can receive financial assistance this year?

(800,000 - 240,000)/3,200 = 175 individuals

2. Mount Company sells only two products - A and B
Selling price - Product A-\$40, Product B-\$50
Variable cost per unit - Product ...

#### Solution Summary

This solution is comprised of a detailed explanation to determine the breakeven sales units, the breakeven sales dollars, and sales units required to achieve certain amount of net income.

\$2.19