Managerial Accounting – Using Microsoft Excel only

Submit as an excel document and show your work with formulas
Fill-in-the-Blank Equations
Fill-in-the-Blank Equations
1. __________ = Difference in Total Cost ÷ Difference in Units Produced
Variable Cost per Unit
2. Contribution Margin = Sales – __________
Variable Costs
3. Contribution Margin Ratio = __________ ÷ Sales
Contribution Margin
4. __________ = Fixed Costs ÷ Unit Contribution Margin
Break-Even Sales (units)
5. Sales (units) = (__________ + Target Profit) ÷ Unit Contribution Margin
Fixed Costs
6. Operating Leverage = Contribution Margin ÷ __________
Operating Income
7. Margin of Safety (percent of current sales) = (Sales – Sales at Break-Even Point)
÷__________
Sales
8. Margin of Safety (SAR) = Sales (SAR) – __________
Break-Even Sales (SAR)
9. The total cost of production for the last four quarters for Moore’s Mowers is as
follows. Use the high-low method to determine the variable cost per unit and the fixed
cost.
Total Cost
Units Produced
Quarter 1 51,000 SAR 2,000
Quarter 2 56,400 SAR 2,300
Quarter 3 49,200 SAR 1,900
Quarter 4 53,700 SAR 2,150
Variable Cost = _____________18 SAR per unit
Fixed Cost = ____________ 15,000 SAR

10. During 2023, Caps by Huely sold 50,000 finished products with a contribution
margin of 55%. The variable costs totaled 40,500 SAR for the year. Determine the
sales, contribution margin, and unit contribution margin.
Sales = ____________ 90,000 SAR
Sales price per unit = ____________ 1.80 SAR
Variable cost per unit = ____________ (0.81)
Contribution margin per unit= ____________ 0.99 SAR
Contribution margin= ____________ 49,500 SAR
11. If a manufacturing company had a contribution margin of $65,700 for 20Y5 from
selling 25,000 products at 6 SAR each, determine the variable cost per unit,
contribution margin ratio, and unit contribution margin. Round unit answers to two
decimal places and percentages to the nearest whole percent.
Sales (SAR) = ____________ $150,000
Contribution margin = ____________ (65,700)
Total variable cost= ____________ $ 84,300
Variable cost per unit= ____________ $3.37
Unit contribution margin= ____________ $2.63
Contribution margin ratio = ____________ 44%
12. Determine the change in operating income for each situation for a company that
has an increase in total sales of $52,000.
a. Unit contribution margin of $4.50 and each product selling for $8.
= ____________$29,250
b. Contribution margin ratio of 24% and each product selling for $10.
= ____________$12,480
c. Unit contribution margin of $6, with total variable costs of $25,000 at $5 per unit.
= ____________$30,000
13. After incurring an operating loss of $(6,000) in 20Y5, the production manager
would like to know the break-even point in sales and units for the company. During
2023, the company sold 6,000 at $3 each. Variable costs for the year totaled $10,800.
Determine the sales and units sold that were needed to break even.
Sales = ____________200,000 SAR
Variable costs = ____________ (80,000)
Contribution margin = ____________120,000 SAR
Fixed costs= ____________ (50,400)
Operating income = ____________ 69,600 SAR
14. A tire manufacturer sells its finished goods for 80 SAR each. The variable cost to
manufacture each product is 20 SAR, while fixed costs equal 20,700 SAR. In 2022,
the company earned operating income of 32,100SAR. In 2023, the CEO would like to
increase operating income by 5%. Determine the sales in dollars and units needed to
achieve the CEO’s goal. Round answers to the nearest whole number.
Target Profit = ____________ 33,705SAR = 32,100SAR × 1.05
Sales (units) = ____________ 907 units = (20,700SAR + 33,705SAR) ÷ $60
Sales (dollars) = ____________ $72,540 = (20,700SAR + 33,705SAR) ÷ 75%, or 907
units × 80SAR per unit
Submit as an excel document for faculty grading.

*Due to rounding, the two methods will differ by $20 in sales.
15.Prepare a cost-volume-profit chart for a company that has an 80% contribution
margin for goods that it sells for $150 each. The company’s fixed costs total $54,000.
Also, determine the break-even point in units and sales.
Break-Even Point (units) = ____________ 450 units = $54,000 ÷ $120 per unit
Break-Even Point (sales) = ____________ $67,500 = $54,000 ÷ 80%, or 450 units ×
$150 per unit
Submit as an excel document with cost-volume-profit chart for faculty grading.

ACT-500: Managerial Accounting XXXXX-DD-Males
Module 06: Critical Thinking Assignment
Cost-Volume-Profit (CVP) Analysis (100 points)
Student’s Name: XXXXXXXXXXXXXXXXX
Student’s ID Number: 23XXXXXXXXXXXX
Course Code: ACT500
CRN: XXXXXXXXX
Academic Year: 2025 – 2026
Term: First Semester
Instructor Name: Dr. XXXXXXXXXX
Prepared Date: XX Oct 2025

ACT-500: Managerial Accounting XXXXX-DD-Males
Module 06: Critical Thinking Assignment
Cost-Volume-Profit (CVP) Analysis (100 points)
Student’s Name: XXXXXXXXXXXXXXXXX
Student’s ID Number: 23XXXXXXXXXXXX
Course Code: ACT500
CRN: XXXXXXXXX
Academic Year: 2025 – 2026
Term: First Semester
Instructor Name: Dr. XXXXXXXXXX
Prepared Date: XX Oct 2025

Fill-in-the-Blank Equations
1. __________ = Difference in Total Cost ÷ Difference in Units Produced
Variable Cost per Unit
2. Contribution Margin = Sales – __________
Variable Costs
3. Contribution Margin Ratio = __________ ÷ Sales
Contribution Margin
4. __________ = Fixed Costs ÷ Unit Contribution Margin
Break-Even Sales (units)
5. Sales (units) = (__________ + Target Profit) ÷ Unit Contribution Margin
Fixed Costs
6. Operating Leverage = Contribution Margin ÷ __________
Operating Income
7. Margin of Safety (percent of current sales) = (Sales – Sales at Break-Even Point) ÷__________
Sales
8. Margin of Safety (SAR) = Sales (SAR) – __________
Break-Even Sales (SAR)
9. The total cost of production for the last four quarters for Moore’s Mowers is as follows. Use the high-low
method to determine the variable cost per unit and the fixed cost.
Quarter 1
Quarter 2
Quarter 3
Quarter 4

Total Cost
51,000 SAR
56,400 SAR
49,200 SAR
53,700 SAR

Units Produced
2,000
2,300
1,900
2,150

Variable Cost = _____________18 SAR per unit
Fixed Cost = ____________ 15,000 SAR
10. During 2023, Caps by Huely sold 50,000 finished products with a contribution margin of 55%. The variable
costs totaled 40,500 SAR for the year. Determine the sales, contribution margin, and unit contribution margin.
Sales = ____________ 90,000 SAR
Sales price per unit = ____________ 1.80 SAR
Variable cost per unit = ____________ (0.81)
Contribution margin per unit= ____________ 0.99 SAR
Contribution margin= ____________ 49,500 SAR
11. If a manufacturing company had a contribution margin of $65,700 for 20Y5 from selling 25,000 products at 6
SAR each, determine the variable cost per unit, contribution margin ratio, and unit contribution margin. Round
unit answers to two decimal places and percentages to the nearest whole percent.
Sales (SAR) = ____________ $150,000
Contribution margin = ____________ (65,700)
Total variable cost= ____________ $ 84,300

Variable cost per unit= ____________ $3.37
Unit contribution margin= ____________ $2.63
Contribution margin ratio = ____________ 44%
12. Determine the change in operating income for each situation for a company that has an increase in total
sales of $52,000.
a. Unit contribution margin of $4.50 and each product selling for $8.
= ____________$29,250
b. Contribution margin ratio of 24% and each product selling for $10.
= ____________$12,480
c. Unit contribution margin of $6, with total variable costs of $25,000 at $5 per unit.
= ____________$30,000
13. After incurring an operating loss of $(6,000) in 20Y5, the production manager would like to know the breakeven point in sales and units for the company. During 2023, the company sold 6,000 at $3 each. Variable costs
for the year totaled $10,800. Determine the sales and units sold that were needed to break even.
Sales = ____________200,000 SAR
Variable costs = ____________ (80,000)
Contribution margin = ____________120,000 SAR
Fixed costs= ____________ (50,400)
Operating income = ____________ 69,600 SAR
14. A tire manufacturer sells its finished goods for 80 SAR each. The variable cost to manufacture each product is
20 SAR, while fixed costs equal 20,700 SAR. In 2022, the company earned operating income of 32,100SAR. In
2023, the CEO would like to increase operating income by 5%. Determine the sales in dollars and units needed to
achieve the CEO’s goal. Round answers to the nearest whole number.
Target Profit = ____________ 33,705SAR = 32,100SAR × 1.05
Sales (units) = ____________ 907 units = (20,700SAR + 33,705SAR) ÷ $60
Sales (dollars) = ____________ $72,540 = (20,700SAR + 33,705SAR) ÷ 75%, or 907 units × 80SAR per unit
Submit as an excel document for faculty grading.
*Due to rounding, the two methods will differ by $20 in sales.
15.Prepare a cost-volume-profit chart for a company that has an 80% contribution margin for goods that it sells
for $150 each. The company’s fixed costs total $54,000. Also, determine the break-even point in units and sales.
Break-Even Point (units) = ____________ 450 units = $54,000 ÷ $120 per unit
Break-Even Point (sales) = ____________ $67,500 = $54,000 ÷ 80%, or 450 units × $150 per unit
Submit as an excel document with cost-volume-profit chart for faculty grading.

1. Variable Cost per Unit = Difference in Total Cost ÷ Difference in Units Produced
2. Contribution Margin = Sales – Variable Costs
3. Contribution Margin Ratio = Contribution Margin ÷ Sales
4. Break-Even Sales (units) = Fixed Costs ÷ Unit Contribution Margin
5. Sales (units) = (Fixed Costs + Target Profit) ÷ Unit Contribution Margin
6. Operating Leverage = Contribution Margin ÷ Operating Income
7. Margin of Safety (percent of current sales) = (Sales – Sales at Break-Even Point) ÷ Sales
8. Margin of Safety (SAR) = Sales (SAR) – Break-Even Sales (SAR)
9. Variable Cost = (Highest Cost – Lowest Cost )/(Highest Unit – Lowest Unit) = (56,400-49,200)/(2,300-1,900) =
Fixed Cost = [Total Cost=(Variable Cost per Unit×Units Produced)+Fixed Cost] = [56,400 (High) = (18 × 2,3
10. Sales = [Contribution Margin = Sales × Contribution Margin Ratio] = [ 0.55 Sales = Sales − Variable Costs
Sales price per unit = [Sales ÷ Units Sold] = [ 90,000 ÷ 50,000 ] = 1.80 SAR
Variable cost per unit = [Total Variable Costs ÷ Units Sold] = [ 40,500 ÷ 50,000 ] = (0.81 SAR)
Contribution margin per unit =[ Sales price per unit – Variable cost per unit ] = [ 1.80 − 0.81 ] = 0.99 SAR
Contribution margin = [ Sales −Total Variable Costs ] = [ 90,000 – 40,500 ] = 49,500 SAR
11. Sales (SAR) = [Units Sold×Sales Price per Unit=25,000×6] = $150,000
Contribution margin = [Total Sales−Total Variable Costs] = [150,000-84,300] = (65,700 SAR)
Total variable cost = [Total Sales−Contribution Margin] = [ 150,000−65,700 ] = $84,300
Variable cost per unit = [Total Variable Costs ÷ Units Sold] = [ 84,300 ÷ 25,000 ] = $3.37
Unit contribution margin = [Unit Contribution Margin] = [ 6−3.37 ] = $2.63
Contribution margin ratio = [Contribution Margin / Total Sales ] = [ 65,700/150,000] = 44%
12. a. = [Units Sold = 52,000/8= 6,500]; [Change in Operating Income = 6,500×4.50] = $29,250
b. =[52,000 * 24% ] = $12,480
c. =[ 25,000/5 = 5000 ]; [6*5000] = $30,000
13. Sales = [ 6,000 * 3 ] = SAR 18,000
Variable costs = SAR 10,800 ( Given)
Contribution margin = [3- (10,800/6,000)]= [3-1.8]=1.2; [1.2*6,000] = SAR 7,200
Fixed costs = 6,000 + 7,200 = SAR 13,200
Operating income = SAR (6,000) ( Given)
Contribution Margin Ratio = [ Contribution Margin / Sales ] = [ 7,200/18,000] = 0.4
Break-even sales = [ Fixed Costs / Contribution Margin Ratio ] = [13,200/0,4] = SAR 33,000
Break-even units = 33,000/3 = 11,000 Units
14. Target Profit = [32,100SAR × 1.05 ] = 33,705 SAR
Sales (units) = [(20,700SAR + 33,705SAR) ÷ $60] = 907 units
Sales (dollars) = [(20,700SAR + 33,705SAR) ÷ 75%, or 907 units × 80SAR per unit ] = $72,540
15. Break-Even Point (units) = [$54,000 ÷ $120 per unit ] = 450 units
Break-Even Point (sales) = [$54,000 ÷ 80%, or 450 units × $150 per unit ] = $67,500

Cost-Volume-Profit (CVP)

Cost-Volume-Profit (CVP)
160,000
140,000
120,000
100,000
80,000

67,500

60,000

40,000
20,000
0
0

50

100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000
Total Revenue

Total Costs

200)/(2,300-1,900) = (7,200/400) = 18 SAR per unit
00 (High) = (18 × 2,300 (High)) + Fixed Cost] = 56,400 – 41,400 = 15,000 SAR
ales − Variable Costs] = [ 0.55 S = Sales − 40,500] = [40,500/0.45] = 90,000 SAR

.81 ] = 0.99 SAR

Units Sold
0
50
100

Total Revenue
0
7,500
15,000

Total Costs
54,000
55,500
57,000

150
200
250
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1000

22,500
30,000
37,500
45,000
52,500
60,000
67,500
75,000
82,500
90,000
97,500
105,000
112,500
120,000
127,500
135,000
142,500
150,000

58,500
60,000
61,500
63,000
64,500
66,000
67,500
69,000
70,500
72,000
73,500
75,000
76,500
78,000
79,500
81,000
82,500
84,000

References
Warren, C. S., & Tayler, W. B. (2020). Managerial accounting (15th ed). Cengage.

1- Variable cost per unit using two point method = Difference in Total Cost ÷ Difference in Units Produced
2- Contribution Margin = Sales – Total variable costs
3- Contribution Margin Ratio = Contribution Margin ÷ Sales
4- Break even in units = Fixed Costs ÷ Unit Contribution Margin
5- Sales (units) = (Fixed Costs + Target Profit) ÷ Unit Contribution Margin
6- Operating Leverage = Contribution Margin ÷ Operating income
7- Margin of Safety (percent of current sales) = (Sales – Sales at Break-Even Point) ÷ Sales
8- Margin of Safety (SAR) = Sales (SAR) – Sales (SAR) at Break-Even Point
Break-Even Sales (SAR) = Fixed Costs ÷ Contribution Margin ratio

12
Increase in to
a

Unit contributi

Sales price pe

Change in op

b

Contribution m

Sales price pe

Change in op

c

Unit contributi

Total variable

Variable cost p

Change in sal
Change in op

13
Operating los
Selling units
Sales price pe
Total variable
Sales

Total variab
Contribution

Fixed costs
Operating in
Break even i
Break even i

14

Sales price pe

Variable cost p

Fixed costs
Operating inc
Change in op

Unit Contrib
Contribution
Sales in $
Sales in unit
Target profi

15
Contribution
Sales price pe
Fixed costs

Unit Contrib
Unit Variabl
Break even i
Break even i

9
Quarter 1
Quarter 2
Quarter 3
Quarter 4

Total cost
51,000
56,400
49,200
53,700

Units produced

Variable cost per unit

7,200

Fixed costs

15,000 Total costs – Total variable costs

10
Selling units
Contribution margin ratio
Total variable costs

50,000
55%
40,500

Total sales
Sales price per unit
Variable cost per unit
Contribution margin per unit
Contribution margin

90,000 Total variable costs / (1- Contribution Margin Ratio)
1.80 Total sales / Selling units
0.81 Total variable costs / Selling units
0.99 Sales price per unit – variable cost per unit
49,500 Total sales – Total variable costs

11
Contribution margin
Selling units
Sales price per unit

65,700
25,000
6

Total sales
Contribution margin
Total variable costs
Variable cost per unit

Unit Contribution margin
Contribution Margin Ratio

150,000 Selling units * Sales price per unit
65,700 Given
84,300 Total sales – Contribution margin
3.37 Total variable costs / Selling units
2.63 Contribution margin / Selling units
44% Contribution Margin ÷ Sales

2,000
2,300
1,900
2,150
400

12
Increase in total sales

52,000

a
Unit contribution margin

Sales price per unit
Change in operating income

4.5
8
29,250 Change in sales units × Unit contribution margin
29,250 Change in sales dollars × Contribution margin ratio

b
Contribution margin ratio

Sales price per unit
Change in operating income

24%
10
12,480 Change in sales dollars × Contribution margin ratio

c

Variable cost per unit

6
25,000
5

Change in sales units
Change in operating income

5,000 Total Variable costs / Variable cost per unit
30,000 Change in sales units × Unit contribution margin

13
Operating loss
Selling units
Sales price per unit
Total variable costs

(6,000)
6,000
3
10,800

Unit contribution margin

Total variable costs

Sales

Total variable costs
Contribution margin

Fixed costs
Operating income
Break even in units
Break even in $

14

18,000 Selling units * Sales price per unit
10,800 Given
7,200 Total sales – Total variable costs
13,200 Contribution margin – Operating loss
(6,000) Given
11,000 Fixed Costs ÷ Unit Contribution Margin
33,000 Fixed Costs ÷ Contribution Margin ratio

Sales price per unit
Fixed costs
Operating income
Change in operating income

80
20
20,700
32,100
5%

Unit Contribution margin
Contribution Margin Ratio
Sales in $
Sales in units
Target profit

60 Sales price per unit – variable cost per unit
75% Unit Contribution Margin ÷ Unit selling price
72,540 (Fixed Costs + Target Profit) ÷ Contribution margin ratio
907 (Fixed Costs + Target Profit) ÷ Unit Contribution Margin
33,705 Operating income 2022 * (1+ Change in operating income )

15
Contribution margin ratio
Sales price per unit
Fixed costs

80%
150
54,000

Unit Contribution margin
Unit Variable Cost
Break even in units
Break even in $

120 Sales price per unit * Contribution margin ratio
30 Sales price per unit – Unit Contribution margin
450 Fixed Costs ÷ Unit Contribution Margin
67,500 Fixed Costs ÷ Contribution Margin ratio

Variable cost per unit

Units
0
150
300
450
600
750

Revenue
0
22,500
45,000
67,500
90,000
112,500

Total cost
54,000
58,500
63,000
67,500
72,000
76,500

Cost-volume-profit chart
110000
100000
90000
80000
70000
60000
50000
40000
30000

450, 67,500

30000
20000
10000
0
0

150
Revenue

300
Total cost

450
Fixed Cost

600
Linear (Total cost)

750

18

2.63 Sales price per unit – variable cost per unit

Fixed Cost
54,000
54,000
54,000
54,000
54,000
54,000

750

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