Accounting Managerial Activities Week 2 Day 9 Sessions 1 And 2

This study source was downloaded by 100000802832151 from CourseHero.com on 11-03-2022 07:57:24 GMT -05:00https://www.coursehero.com/file/173611634/CVP-Activities-Week-2-Day-9-Sessions-1-and-2docx/ Week 2 Day 6 Sessions 1 and 2CVPIn Class ActivitiesQuestion 1Using the below information: -a. Prepare a CVP Income Statement that can be used for CVP analysis. $Sales (200,000 units) 400,000Cost of Goods Sold 317,500 (This includes Variable costs of $275,000)Operating Expenses 60,000 (This includes fixed costs of $25,000)CVP Income Statementsales $400,000Less cogs(variable) 275,000Less operating cost (variable) 60,000-25,000= 35,000Contribution Margin (CM= Sales- VC)400,000- 275,000-35,000 90,000Less cogs(fixed) (317,500-275,000) 42,500Less operating cost( fixed) 25,000Net profit (=revenue-expense)(400,000-275,000-35,000-42,500-25,000) or (90,000-42,500-25,000) 22,500b. Calculate the Contribution Margin per UnitWhat is the price per unit? That is , what are we selling each unit for?Sales $400,000Sales(unit)= 200,000 400,000/200,000= $2 per unit (sales price)Total variable costs= 275,000+ 35,000= 310,000$310,000/200,000(units) $1.55 of variables cost per unitSales price= 2$... VC per unit= 1.55 CM= sales- VC2-1.55= $0.45 cents CM per unitPage | 1This study source was downloaded by 100000802832151 from CourseHero.com on 11-03-2022 07:57:24 GMT -05:00https://www.coursehero.com/file/173611634/CVP-Activities-Week-2-Day-9-Sessions-1-and-2docx/$90,000(CM) /$200,000(unit sold) = 0.45 cents CM per unitc. Calculate the Contribution Margin Ratio Cm/sales= 90,000/400,000= 0,225= 22.5%Or 0.45/2= 22.5%Question 2Using the below information:-a. Prepare a CVP Income Statement that can be used for CVP analysis. $Sales (100,000 units) 500,000Cost of