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Chapter CVP (Cost-Volume-Profit) Analysis Two versions of the break-even formula: (USP) Q -(UVC)Q-FC OI (Equation Method) Where Q (FC + OI)/UCM (Contribution Margin Method) UCM = USP-UVC USP = Unit selling price UVC = Unit variable costs UCM = Unit contribution margin FC = Fixed costs Q = Quantity produced AND sold OI = operating income Straight-forward problem: Last year, TEB, Inc. sold 9,000 units at $21 per unit. Each unit had variable cost of $10. Fixed cost was $7, 500. This year, the variable cost of $10 and fixed cost of S7, 500 have remained the same, while the sales price decreased toSI4 per unit sold. Compute breakeven in units and dollars for the current year Show detailed, label computations, i.e., every number should be labeled and every computation should be shown. Besides the correctness of your solution, you will be graded on your ability to follow instructions and to use good written communication skills.)Show transcribed image text Chapter CVP (Cost-Volume-Profit) Analysis Two versions of the break-even formula: (USP) Q -(UVC)Q-FC OI (Equation Method) Where Q (FC + OI)/UCM (Contribution Margin Method) UCM = USP-UVC USP = Unit selling price UVC = Unit variable costs UCM = Unit contribution margin FC = Fixed costs Q = Quantity produced AND sold OI = operating income Straight-forward problem: Last year, TEB, Inc. sold 9,000 units at $21 per unit. Each unit had variable cost of $10. Fixed cost was $7, 500. This year, the variable cost of $10 and fixed cost of S7, 500 have remained the same, while the sales price decreased toSI4 per unit sold. Compute breakeven in units and dollars for the current year Show detailed, label computations, i.e., every number should be labeled and every computation should be shown. Besides the correctness of your solution, you will be graded on your ability to follow instructions and to use good written communication skills.)
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