CVP Sensitivity Analysis PLEASE HELP Thank you CVP Sensitivi

CVP Sensitivity Analysis

PLEASE HELP!

Thank you.

CVP Sensitivity Analysis Spend $5000 on Advertising Break Even Inc. UP 5% Inc. V Inc. FC 5% Break Even Inc. up 5% Inc. VC 5% Inc. FC 5% Earn $50k Profit C 5% Earn $50000 Profit Earn $100000 Profit Inc. UP 10% Break Eve Dec. VC 10% Break Even Break Even Lawns Cut Unit Price 80 Variable Cost 20 Contriutin -Gross Margin Fixed Costs 10,000 P&L; Revenue Variable Costs Gross Margin Fixed Costs NET INCOME

Solution

Note: I\'ve mentioned \"Advertisement cost\" and \"Target profit\" in separate lines for your easy understanding. When filling the sheet, you need to add these with Fixed Cost as it will act as fixed cost in order to calculate Break Even.

	Break Even	Earn $50000 Profit	Earn $100000 Profit	Inc. UP 10% Break Even	Dec. VC 10% Break Even	Spend $5000 on Advertising Break Even	Inc. UP 5% Inc. VC 5% Inc. FC 5% Break Even	Inc. UP 5% Inc. VC 5% Inc. FC 5% Earn $50K Profit
Lawns Cut	166.67	1,000.00	1,833.33	147.06	161.29	250.00	166.67	952.38
Unit Price	80.00	80.00	80.00	88.00	80.00	80.00	84.00	84.00
Variable Cost	20.00	20.00	20.00	20.00	18.00	20.00	21.00	21.00
Less: Contribution Margin	60.00	60.00	60.00	68.00	62.00	60.00	63.00	63.00
Fixed Cost	10,000.00	10,000.00	10,000.00	10,000.00	10,000.00	10,000.00	10,500.00	10,000.00
Target Profit	-	50,000.00	100,000.00	-	-	-	-	50,000.00
Advertisement Cost	-	-	-	-	-	5,000.00	-	-
Revenue	13,333.33	80,000.00	146,666.67	12,941.18	12,903.23	20,000.00	14,000.00	80,000.00
Less: Variable Costs	3,333.33	20,000.00	36,666.67	2,941.18	2,903.23	5,000.00	3,500.00	20,000.00
Gross Margin	10,000.00	60,000.00	110,000.00	10,000.00	10,000.00	15,000.00	10,500.00	60,000.00
Less: Fixed Cost	10,000.00	10,000.00	10,000.00	10,000.00	10,000.00	10,000.00	10,500.00	10,000.00
Less: Advertisement Cost	-	-	-	-	-	5,000.00	-	-
Net Income	-	50,000.00	100,000.00	-	-	-	-	50,000.00