Project Summary:The following data is provided for a product to complete a cost-volume-profit...

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Project Summary:The following data is provided for a product to complete a cost-volume-profit analysis.Original DataSales price per unit  $50.00Variable costs per unit  $23.00Fixed Costs  $5,500Monthly Volume  250 units soldTarget Profit Per Month  $1,700Assumption ChangesExpected Increase in Monthly Volume 10%Expected Increase in Variable Cost   2%Project Requirements:Complete the following for the original data and for the assumption change. In your project submission, there will be two sets of calculations and one contribution margin income statement:Calculate the Contribution Margin in Units and Contribution Margin RatioCalculate the Breakeven Point in Units Sales and Sales DollarsCalculate the Target Sales in Units and DollarsCalculate the Margin of Safety in Units and Margin of Safety PercentageCalculate the Operating LeveragePrepare a Contribution Margin Income Statement for the assumption change only.RubricCVP Analysis RubricCVP Analysis RubricCriteriaRatingsPtsThis criterion is linked to a Learning OutcomeOriginal Data - Calculation of Contribution Margin Ratio (3 points)Objectives Compute the contribution margin ratiothreshold:2.0pts3ptsThis criterion is linked to a Learning OutcomeOriginal Data - Calculation of Break-even Point (3 points)Objectives Determine the break-even point in units and dollars threshold:2.0pts3ptsThis criterion is linked to a Learning OutcomeOriginal Data - Calculation of Target Sales (3 points)Objectives Determine the level of sales needed to achieve a desired target profit in units and dollarsthreshold:2.0pts3ptsThis criterion is linked to a Learning OutcomeOriginal Data - Calculation of Operating Leverage (3 points)Objectives Compute the degree of operating leverage at a particular level of salesthreshold:2.0pts3ptsThis criterion is linked to a Learning OutcomeAssumption Change - Calculation of Contribution Margin Ratio (3 points)Objectives Calculate the contribution margin ratio Use the contribution margin ratio to compute changes in contribution margin and net operating income resulting from changes in sales volume threshold:2.0pts3ptsThis criterion is linked to a Learning OutcomeAssumption Change - Calculation of Break-even Point (3 points)Objectives Determine the break-even point in units and dollarsthreshold:2.0pts3ptsThis criterion is linked to a Learning OutcomeAssumption Change - Calculation of Target Sales (3 points)Objectives Determine the level of sales needed to achieve a desired target profit in units and dollarsthreshold:2.0pts3ptsThis criterion is linked to a Learning OutcomeAssumption Change - Calculation of Operating Leverage (3 points)Objectives Compute the degree of operating leverage at a particular level of salesthreshold:2.0pts3ptsThis criterion is linked to a Learning OutcomeAssumption Change - Contribution Margin Income Statement (6 points)Objectives Prepare a contribution margin income statement Show how changes in sales volume affect contribution margin and net operating income Show the effects on net operating income of changes in variable costs, fixed costs, and selling pricethreshold:4.0pts6ptsTotal Points:30

Ayushi · Accepted Answer

Sheet1
	Data Given:
			Original	Assumption Changes
	Units Sold		250	275
	Selling Price Per Unit:		$50.00	$50.00
	Variable Cost Per Unit:		$23.00	$23.46
	Fixed Cost		$5,500.00	$5,500.00
	Target Profit		$1,700.00	$1,700.00
	1. Contribution Margin:
	Selling Price Per Unit		$50.00	$50.00		CONTRIBUTION MARGIN PER UNIT = SELLING PRICE PER UNIT - VARIABLE COST PER UNIT
	Less: Variable Cost Per Unit		$23.00	$23.46		CONTRIBUTION MARGIN RATIO= (CONTRIBUTION MARGIN PER UNIT/ SELLING PRICE PER UNIT)*100
	Contribution Margin Per Unit		$27.00	$26.54
	Contribution Margin Ratio		54.00%	53.08%
	2. Break Even Point:
	Fixed Cost		$5,500.00	$5,500.00		BREAK EVEN POINT (UNITS) = FIXED COST/CONTRIBUTION MARGIN PER UNIT
	Contribution Margin Per Unit		$27.00	$26.

Project Summary: The following data is provided for a product to complete a cost-volume-profit analysis. Original Data Sales price per unit $50.00 Variable costs per unit $23.00 Fixed Costs $5,500...

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Criteria	Ratings	Pts
This criterion is linked to a Learning OutcomeOriginal Data - Calculation of Contribution Margin Ratio (3 points)Objectives Compute the contribution margin ratiothreshold:2.0pts		3pts
This criterion is linked to a Learning OutcomeOriginal Data - Calculation of Break-even Point (3 points)Objectives Determine the break-even point in units and dollars threshold:2.0pts		3pts
This criterion is linked to a Learning OutcomeOriginal Data - Calculation of Target Sales (3 points)Objectives Determine the level of sales needed to achieve a desired target profit in units and dollarsthreshold:2.0pts		3pts
This criterion is linked to a Learning OutcomeOriginal Data - Calculation of Operating Leverage (3 points)Objectives Compute the degree of operating leverage at a particular level of salesthreshold:2.0pts		3pts
This criterion is linked to a Learning OutcomeAssumption Change - Calculation of Contribution Margin Ratio (3 points)Objectives Calculate the contribution margin ratio Use the contribution margin ratio to compute changes in contribution margin and net operating income resulting from changes in sales volume threshold:2.0pts		3pts
This criterion is linked to a Learning OutcomeAssumption Change - Calculation of Break-even Point (3 points)Objectives Determine the break-even point in units and dollarsthreshold:2.0pts		3pts
This criterion is linked to a Learning OutcomeAssumption Change - Calculation of Target Sales (3 points)Objectives Determine the level of sales needed to achieve a desired target profit in units and dollarsthreshold:2.0pts		3pts
This criterion is linked to a Learning OutcomeAssumption Change - Calculation of Operating Leverage (3 points)Objectives Compute the degree of operating leverage at a particular level of salesthreshold:2.0pts		3pts
This criterion is linked to a Learning OutcomeAssumption Change - Contribution Margin Income Statement (6 points)Objectives Prepare a contribution margin income statement Show how changes in sales volume affect contribution margin and net operating income Show the effects on net operating income of changes in variable costs, fixed costs, and selling pricethreshold:4.0pts		6pts
Total Points:30