Cost-Volume-Profit Review Problems (For Exam 1) QUESTI ! 1 Bridal Shoppe sells wedding dresses.

The cost of ea"# dress is comprised of the following: Selling price of $1,000 and variable (flexible costs of $!00. Total fixed (capacit"#related costs for Bridal Shoppe are $$0,000. %. &hat is the contrib'tion margin per dress( Reve$ues % Flexible Costs & C'
(1)*** - (+** & (,**

B. &hat is the Bridal Shoppe)s total profit when *00 dresses are sold( Reve$ues % Flexible Costs % Ca-a"it.-Relate/ Costs & Total Profit
0** ((1)***) % 0**((+**) - (1*)*** & (2*)***

+. ,ow man" dresses m'st Bridal Shoppe sell to reach the brea-even point( 3 & Ca-a"it.-Relate/ Costs4Co$tributio$ 'ar5i$ 3 & (1*)***4(,** 3 & 16* /resses

.. ,ow man" dresses m'st Bridal Shoppe sell to "ield a profit of $/0,000( Total Reve$ues % Total Costs & Total Profit (1)***3 - (+**3 - (1*)*** & (,*)*** (,**3 & (16*)*** 3 & (16*)***4(,** 3 & 06* /resses

QUESTI ! 0 0orthenscold +ompan" sells several prod'cts. 1nformation of average reven'e and costs are as follows: Selling price per 'nit 2ariable costs per 'nit: .irect materials .irect man'fact'ring labor 3an'fact'ring overhead Selling costs %nn'al fixed costs 1. +alc'late the contrib'tion margin per 'nit. (0* - (+ - (17,* - (*7+* - (0 & (10 *. +alc'late the n'mber of 'nits 0orthenscold)s m'st sell each "ear to brea- even. 0*3 - 83 - 1,)*** & *9 3 & 8)*** u$its 4. +alc'late the n'mber of 'nits 0orthenscold)s m'st sell to "ield a profit of $1!!,000. 0*3 % 83 % 1,)*** & (1++)***9 3 & 0*)*** u$its $*0.00 $!.00 $1./0 $0.!0 $*.00 $$/,000

QUESTI ! 2 Berhannan)s +ell'lar sells phones for $100. The 'nit variable cost per phone is $50 pl's a selling commission of 106. 7ixed man'fact'ring costs total $1,*50 per month, while fixed selling and administrative costs total $*,500. %. &hat is the contrib'tion margin per phone( C' -er -#o$e & (1** - (6* - *71((1**) & (+* B. &hat is the brea-even point in phones( ! & :rea;eve$ i$ -#o$es (1**! - (6*! - (1*! - (1)06* - (0)6** & * (+*! - (2)<6* & * ! & (2)<6* 4 (+* & 127<6 -#o$es :rea;eve$ Poi$t & 1+ -#o$es c. ,ow man" phones m'st be sold to earn a targeted profit of $8,500( ! & P#o$es to be sol/ (1**! - (6*! - (1*! - (1)06* - (0)6** & (<)6** (+*! & (11)06* ! & (11)06* 4 (+* & 081706 -#o$es To a"#ieve tar5et -rofit= 'ust sell 080 -#o$es