- Cost-Volume-Profit (CVP) Question 2 Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs: $200,000 Required Each of these are separate situations: A. What is the break-even point in total sales in dollars? B. How many units need to be sold to make a profit of $20,000? C. How many units need to be sold to make a profit of $20,000 if fixed costs increase from $200,000 to $250,000? D. How many units would they need to sell if they wanted to double profit, if the current number of units sold is 200? Question 1 A company has the following financial information: machine costs (in $) year Labour (in hours) 2009 1,200 103,266 2010 1,225 110,216 2011 1,100 97,579 2012 1,050 94,581 2013 1,160 111,762 2014 1,200 115,786 2015 1,350 136,476 2016 1,380 141,852 2017 1,250 128,679 2018 1,270 135,334 2019 1,220 132,222 Question 3 Given the following information: Deluxe Homes is a residential Home Builder. Based on their current production of 300 homes per year, their costs per unit are: (in $'000) Direct labour $ 20 Direct materials 200 Variable overhead 30 Fixed overhead 40 Variable selling costs 10 Fixed selling costs 10 Total cost per unit $310 Required Required Using the high-low method, what are the estimated machine costs a. if there are 1,100 Labour hours? b. if there are zero Labour hours? c. What is a significant drawback to using the High-low method to calculate costs at zero labour hours? Each of these are separate situations: A. What is the cost per unit if production is increased to 400 homes per year, and there is an increase of $3.50 million in total fixed costs? B. What is the cost per unit if production is decreased to 270 homes per year, and there is a decrease of $2.04 million in total fixed costs?