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**Cost-Volume-Profit Analysis**

Chapter 20 Exercises

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**High-Low Method In-Class Exercise (Form groups and work exercise):**

Exercise No Page HO Handout High-Low Method (Use the format, as reflected on the next slide, to begin the exercise)

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High-Low Method Exercise Page HO Handout High-Low Method

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High-Low Method

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High-Low Method

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High-Low Method 500

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High-Low Method

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High-Low Method End of Exercise

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**Break-Even Analysis In-Class Exercise (Form groups and work exercise):**

Exercise No Page E Break-even Analysis

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**Break-Even Analysis Break-Even Analysis Exercise E20-25:**

Trendy Toes Co. produces sports socks that sell for $1.90 per package with a total variable cost of $0.95 per unit. The company’s annual fixed costs are $95,000. Requirements: (a) Compute the contribution margin per package (b) Compute the contribution ratio per package (c) Compute the break-even point in units (d) Compute the break-even point in dollars of sales

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Break-Even Analysis Exercise E20-25 (Part 1)

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Break-Even Analysis Exercise E20-25 (Part 1)

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Break-Even Analysis Exercise E20-25 (Part 2)

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Break-Even Analysis Exercise E20-25 (Part 2)

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Break-Even Analysis End of Exercise

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**Composite Units In-Class Exercise (Form groups and work exercise):**

Exercise No Page E Break-even Point for Composite Units (Use the format, as reflected on the next slide, to begin the exercise)

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Composite Units Exercise Page E Composite Units

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**Composite Units Composite Units Exercise E20-32:**

Speedy’s Scooters plans acquire and sell two type of scooters (standard and chrome). Speedy expects to sell one standard scooter for every three chrome scooters (ratio of 1:3). The following additional information is provided. Standard Chrome Selling price………………. $ $ 70 Variable cost……………… $ $ 40 Monthly fixed costs are $23, Requirements: (1) How many of each type of scooter must Speedy’s Scooters sell each month to break even? (2) How many of each type of scooter must Speedy’s Scooters sell each month to earn $25,300?

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Composite Units

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Composite Units

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Composite Units

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Composite Units End of Exercise

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Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 7 Cost-Volume- Profit Analysis.

Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 7 Cost-Volume- Profit Analysis.

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