Explore BrainMass

Explore BrainMass

    CVP Analysis

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Clyde's Marina has estimated that fixed
    costs per month are $300,000 and variable cost per dollar of sales is $0.40.


    a. What is the break-even point per month in sales dollars?
    b. What level of sales dollars is needed for a monthly profit of $60,000?
    c. For the month of July, the marina anticipates sales of $1,000,000. What is the expected level
    of profit?

    © BrainMass Inc. brainmass.com December 24, 2021, 9:17 pm ad1c9bdddf

    Solution Preview

    a. Beakeven point in sales dollars = Fixed cost/contribution margin ratio
    Fixed cost = 300,000
    Contribution ...

    Solution Summary

    The solution explains how to determine the units needed for break-even and for desired profit.