Sensitivity Analysis

Published: 2021-09-14 13:45:10
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Category: Miscellaneous

Type of paper: Essay

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Monthly operating profit when sales total $360,000

Total Sales Revenue = 360,000
Less Total Variable Exp. = 240,000
Contribution Margin = 120,000
Less Total Fixed Costs = 60,000
Operating Profit 60,000


2. Break-even number in units

BEP = Fixed Cost
Unit Contribution Margin

= 60,000 = 60,000 = 2000 units
90 – 60 30


3. Number of units sold that would produce an operating profit of $120,000.

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