Cost Volume Profit Analysis

Question 1

Contribution margin per unit

Answer 1

Contribution margin (in $) / units sold

Question 2

Break even (units)

Answer 2

Fixed costs / contribution margin per unit

Question 3

Break even (sales)

Answer 3

Fixed costs / contribution margin per unit

Question 4

Sales volume

Answer 4

Fixed costs + target profit / contribution margin

Question 5

Before-tax profit

Answer 5

After tax profit / 1 - tax rate

Question 6

Sales volume to reach after-tax target profit

Answer 6

Fixed osts + before tax profit / contribution margin unit