# CVP Analysis

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Clyde's Marina has estimated that fixed

costs per month are $300,000 and variable cost per dollar of sales is $0.40.

Required

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?

https://brainmass.com/business/cost-volume-profit-analysis/cvp-analysis-profit-equation-362487

#### 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.

$2.49