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-   -   Cvp analysis changes in variance (https://www.askmehelpdesk.com/showthread.php?t=83388)

  • Apr 16, 2007, 07:44 PM
    ambdelgado
    cvp analysis changes in variance
    I need help with this assignment any help would be greatly appreciated.

    C-V-P Analysis-Changes in Variables
    Tracy, Inc. estimates that next year's results will be:
    Sales revenue (75,000 units) $900,000
    Less Variable costs (375,000)
    Less fixed costs (300,000)
    Profit $225,000

    Recompute profit, assuming each of the following independent conditions:
    1 A 9% increase in the contribution margin.
    2 An 8% increase in the sales volume.
    3 A 4% decrease in the sales volume.
    4 A 6% increase in variable costs per unit.
    5 A 5% decrease in fixed costs
    6 A 5% increase in fixed costs.
    7 A 12% increase in the sales volume and a 6% increase in fixed costs.
    my solution
    1


    2 75,000 x 8% 6,000
    75,000
    81,000

    3 75,000 x 4% 3,000
    75,000
    72,000

    4 (375,000) x 6% 22,500
    (375,000)
    ($352,500)

    5 (300,000) x 5% 15000
    (300,000)
    $285,000

    6 (300,000) x 5% 15000
    (300,000)
    ($315,000)


    7 75,000 x 12% 9,000
    75,000
    84,000
  • Apr 16, 2007, 11:52 PM
    goldenbutterfly
    You have to compute for profit. Use the formula:

    Sales xx
    Less: Variable Costs xx
    Contribution Margin xx
    Less Fixed Costs xx
    Profit xx

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