Part A: Using CVP analysis to find breakeven points and target profit volumes
Mimi Incorporated has a targeted operating income of $518,000 for the upcoming year. The selling price of its single product is $40.50 each, while the variable cost per unit is $12.50. Fixed costs total $182,000.
Calculate the following:
- Contribution margin per unit
- Breakeven point in units
- Units to be sold to earn the targeted operating income