M5 Project Assignment

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M3WorkingAheadCalculations.xls

CVP

Sales price per unit $75.00 *
Variable Cost per unit $67.00 *
Fixed Cost $100,000.00 *
Targeted Net Income $0.00 * (assume 0 if you want to calculate breakeven)
Calculated Volume 12,500 calculated
* inputted by user
Break-Even Point =$100,000/$75-$67
=$100,000/$8
=12,500 units
Internal Rate of Return 0=937,500+937,500(1+IRR)
0=937,500+937,500+937,500IRR
0=1,875,000+937,500IRR
937,500IRR=-1,875,000
IRR=-2%
Net Present Value NPV=-937,500+(75*12,500) (1-2%)
=937,500+937,500(1-0.02)
=937,500+918750
=1,856,250