Cost-Volume-Profit Analysis
Week 4 – Milestone 2
Posted Mar 22, 2021 12:01 AM
We are starting week 4. This week we have Milestone 2 due. For this milestone you will be completing two tabs in the workbook – Contribution Margin Analysis and Breakeven Analysis.
CONTRIBUTION MARGIN ANALYSIS
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Choose pricing for all three categories (Collars, Leashes, Harnesses)
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Calculate the Contribution Margin for each category using the variable costs calculated in Milestone 1
BREAKEVEN ANALYSIS
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Calculate the Breakeven Units for all three categories using the Sales Price you chose, the Fixed Costs calculated in Milestone 1 and the Contribution Margins calculated above.
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Calculate the Breakeven Units for two other Target Profit $’s for each of the three categories.
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Round up your breakeven units …. You cannot sell your customer a partial product or service!
SAMPLE ASSIGNMENT
