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Chapter 7, CVP (Cost-Volume-Profit) Analysis Two versions of the break-even formula: (USP)Q-(UVC)Q-FC = OI (Equation Method) Q =(FC + OI)/UCM (Contribution Margin Method) where: USP = Unit selling price UVC = Unit variable costs UCM = Unit contribution margin FC = Fixed costs Q = Quantity produced AND sold OI = Operating income A straight-forward problem requiring you to know what information to use and what information to ignore: TEB, Inc. sells a product. Actual 2008 and estimated projected 2009 cost information for the product are presented below. Sales are based on a selling price of $105 per unit in 2008 and, due to competition, $100 per unit in 2009. Units produced = units sold On the blank sheet provided, using the breakeven formulas, compute the breakeven in units and dollars for 2009. Return the answer sheet only and KEEP this question sheet. Show detailed, labeled computations. You may use the abbreviations above since they areShow transcribed image text Chapter 7, CVP (Cost-Volume-Profit) Analysis Two versions of the break-even formula: (USP)Q-(UVC)Q-FC = OI (Equation Method) Q =(FC + OI)/UCM (Contribution Margin Method) where: USP = Unit selling price UVC = Unit variable costs UCM = Unit contribution margin FC = Fixed costs Q = Quantity produced AND sold OI = Operating income A straight-forward problem requiring you to know what information to use and what information to ignore: TEB, Inc. sells a product. Actual 2008 and estimated projected 2009 cost information for the product are presented below. Sales are based on a selling price of $105 per unit in 2008 and, due to competition, $100 per unit in 2009. Units produced = units sold On the blank sheet provided, using the breakeven formulas, compute the breakeven in units and dollars for 2009. Return the answer sheet only and KEEP this question sheet. Show detailed, labeled computations. You may use the abbreviations above since they are
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