Response to the following problem:
Corveau Company expects to sell 400,000 units of its product next year, which would generate total sales of $34 million. Management predicts that pretax net income for next year will be $2,500,000 and that the contribution margin per unit will be $50.
(1) Use this information to compute next year's total expected
(a) Variable costs and
(b) Fixed costs.
(2) Prepare a CVP chart from this information.