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