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    MGT402 Assignment Solution Fall 2020-2021

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    Fun N
    This document provides instructions and calculations for an assignment on contribution margin and breakeven analysis. It calculates the contribution margin per unit as $20 and breakeven sales in units as 153. It then shows an example of decreasing price by 10% and increasing volume by 5%, finding the new sales, variable costs, contribution, fixed costs, and net profit. The net profit with this price and volume change is $3,240.

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    MGT402 Assignment Solution Fall 2020-2021

    Uploaded by

    Fun N
    45 views1 page
    This document provides instructions and calculations for an assignment on contribution margin and breakeven analysis. It calculates the contribution margin per unit as $20 and breakeven sales in units as 153. It then shows an example of decreasing price by 10% and increasing volume by 5%, finding the new sales, variable costs, contribution, fixed costs, and net profit. The net profit with this price and volume change is $3,240.

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    MGT402 Assignment Solution Fall 2020-2021 (1)

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    This document provides instructions and calculations for an assignment on contribution margin and breakeven analysis. It calculates the contribution margin per unit as $20 and breakeven sales in units as 153. It then shows an example of decreasing price by 10% and increasing volume by 5%, finding the new sales, variable costs, contribution, fixed costs, and net profit. The net profit with this price and volume change is $3,240.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    45 views1 page

    MGT402 Assignment Solution Fall 2020-2021

    Uploaded by

    Fun N
    This document provides instructions and calculations for an assignment on contribution margin and breakeven analysis. It calculates the contribution margin per unit as $20 and breakeven sales in units as 153. It then shows an example of decreasing price by 10% and increasing volume by 5%, finding the new sales, variable costs, contribution, fixed costs, and net profit. The net profit with this price and volume change is $3,240.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    MGT402 Assignment Solution Fall 2020-2021 Solution
    1. Calculate the contribution margin per unit.
    Contribution margin par unit = Sales less variable costs of sales
    Contribution margin par unit = 80-(20+15+25)
    Contribution margin par unit =20

    2. Calculate breakeven sales in terms of units


    breakeven sales in terms of units = FC/
    Contribution margin per unit
    breakeven sales in terms of units = 3660/20
    breakeven sales in terms of units = 153

    decrease in sales price by 10% and increase in sales volume by 5%

    TOTAL 11340
    SALE (80+(80*5/100)84 5040
    LESS VARIABLE COST (20+15+25)*84 5040
    CONTRIBUTION 6300
    FIXED COST 3060
    NET PROFIT 3240

    PER UNIT
    150-(150*10/100)135

    The END

    VuDaily.com

    Best of luck

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