Question

CVP and Sensitivity Analysis (Single Product). Victoria, Inc.,has annual fixed costs totaling $240,000 and variable costs of $6per unit. Each unit of product is sold for $30. Victoria expects tosell 12,000 units this year (this is the base case). Required: Findthe break-even point in units. How many units must be sold to earnan annual profit of $100,000? (Round to the nearest unit.) Find thebreak-even point in sales dollars. What amount of sales dollars isrequired to earn an annual profit of $140,000? Find the margin ofsafety in units and in sales dollars.