Question: 1. Greenspan Company management predicts $500,000 of variable costs, $800,000 of fixed costs, and a pretax income of $100,000 in the next period. Management also predicts that the contribution margin per unit will be $60. Use this information to compute the
(1) total expected dollar sales for next period and
(2) number of units expected to be sold next period.
2. What additional assumption about sales mix must be made in doing a conventional CVP analysis for a company that produces and sells more than one product?