STRATEGIC BUSINESS ANALYSIS
QUIZ NO. 2 - CVP ANALYSIS
1 B/D
2 B
3 B
4 D
5 B
6 C
7 A
8 D
9 D
10 C
11 C
12 D
13 C
14 D
15 C
16 C
17 B
18 A
19 A
20 A
21 B
22 C
23 A
24 BONUS
25 C
26 B
27 A
28 C
29 A
30 BONUS
31 B
32 B
33 A
34 C
35 B
STRATEGIC BUSINESS ANALYSIS
QUIZ NO. 2 - CVP ANALYSIS
SOLUTIONS quiz
2 Net operating income
Divided by CMR
Divided by Net Operating income
4 Contribution margin per unit
Units sold inclusive of increase
Total contribution margin
Less: Net Operating income
Should be fixed costs
Less: current fixed costs
Allowable increase in fixed costs (advertising)
5
SMR in units
SMR in USP
USP
VC per unit
CM / unit
Weighted CM/Unit
CM R
Composite USP
Composite CM
Weighted CMR
Fixed cost
12% X = (53.33%X-1,800,000)70%
Sales to achieve 12% return 4,973,749.65
Composite Sales Price 4,800.00
Units 1,036.20
6 DOL is CM divided by Net income
Contribution margin per unit
Units sold
Contribution margin
Net income
DOL
7 Sales
Variable Costs
Contribution margin
Fixed costs
Divided by CMR
BEP in pesos
9 DOL is CM / Net income
Net income is Contribution margin divided by DOL
At breakeven point (sales less margin of safety)
Breakeven point multiplied by CMR is FC
10 Fixed costs
Divided by 52 weeks a year
Fixed costs per week
Add: Operating Profit
Contribution margin
Divided by CMR
13 Is equal to the contribution margin per unit
15 10%SALES = 30%SALES LESS FIXED COSTS
16 Gross up the net income, thus Php 120,000 divided by 60%
17 Fixed costs equal to Contribution margin at BEP
Thus CM/unit is
18 Sales
Variable cost
CMR
Desired Sales Fixed costs plus profit divided by CMR
22 USP
VC / unit
CM/U
% probability No. of units
40% 70 units will be sold
60% 40 units will be sold
Total CM
Fixed costs
23
Sales
VC
CM
CMR
SMR in USP
Weighted
24 BONUS
26 Sales
Variable costs
Contribution margin
Sales less Margin of Safety is BEP
BEP multiplied by CMR is FC
28 CMR
Multiplied by Sales
Less profit
Fixed costs at desired profit of Php 80,000
30
Sales price
Variable cost
Contribution margin
Weighted CM per unit
Fixed costs 840,000.00
CM per unit 14.00
BEP in units 60,000.00
31 Contribution margin per unit
No . Of units sold
150,000.00
80.00%
187,500.00
10.00
180,000.00
1,800,000.00
200,000.00
1,600,000.00
1,500,000.00
100,000.00
3.00 5.00
TTT TTS TOTAL
37.50% 62.50%
83.33% 16.67%
1,200.00 240.00 1,440.00
480.00 160.00
720.00 80.00
270.00 50.00 320.00
60.00% 33.33%
3,600.00 1,200.00 4,800.00
2,160.00 400.00 2,560.00
53.33%
1,800,000.00
3,108.59 5,180.99
20.00
25,000.00
500,000.00
50,000.00
10.00
80,000.00
20,000.00
60,000.00 0.75
30,000.00
0.75
40,000.00
75,000.00
300,000.00
225,000.00
52,000.00
52.00
1,000.00
2,500.00
3,500.00
20%
17,500.00
100.00
150,000.00
600.00
3.00
150.00
90.00
0.40
1,050,000.00
37.50
12.50
25.00
Projected units CM/Unit Total
28.00 25.00 700.00
24.00 25.00 600.00
52.00 1,300.00
Option 1 Option 2 Option 3
1,300.00 1,300.00 1,300.00
1,000.00 847.5 390
300.00 452.50 910.00
Cake Cream Mallows
10,000.00 20,000.00 30,000.00 60,000.00
4,000.00 12,000.00 15,000.00
6,000.00 8,000.00 15,000.00
60.00% 40.00% 50.00%
16.67% 33.33% 50.00%
10.00% 13.33% 25.00% 48.33%
120,000.00
80,000.00
40,000.00 0.3333333333
96,000.00
32,000.00
30%
600,000.00
180,000.00
80,000.00
100,000.00
2.00 1.00
A B
66.67% 33.33%
40.00 50.00
24.00 40.00
16.00 10.00
10.67 3.33 14.00
40,000.00 20,000.00
- -
13.00
4,600.00
59,800.00
