| EXERCISE E4 12 CVP Analysis, Profit Equation | ||||||||
| 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? | ||||||||
| Enter text answer here. | ||||||||
| Selling price: (Relational) | Amount | |||||||
| Variable cost: (Relational) | Amount | |||||||
| Contribution Margin: (Relational) | Formula | |||||||
| Fixed costs: | Amount | Af· | Amount | = | Formula | |||
| b. What level of sales is needed for a monthly profit of | $60,000 | ? | ||||||
| ( | Amount | + | Amount | ) Af· | Amount | = | Formula | |
| c. For the month of July, the marina anticipates sales of | $1,000,000 | What is the expected level of | ||||||
| profit? | ||||||||
| ( | Amount | * | Amount | ) | Amount | = | Formula | |
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