managerial accounting 4 12 421327

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

) 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

Formula