1. Creative Ventures
Light Styks
Income Statement Cost Volume-Prof
Units Sold
Price Elasticity of Demand 1.4 14,000
0
Revenue Projected Optimal Price 5000
Units Sold 14,000 10,486 10000
Price per Unit $11.00 $12.97 15000
Total Revenue $154,000.00 $136,023.63 20000
25000
Variable Expenses Projected Optimal Price 30000
Units Produced (5% Surplus) 14,700 11,010 Net In
Material Cost per Unit $3.50 $3.50 Pr
Total Material Cost $51,450.00 $38,534.88 Units Sold
Manufacturing Cost per Unit $3.25 $3.25 0
Total Manufacturing Cost $47,775.00 $35,782.39 5000
Total Variable Expenses $99,225.00 $74,317.27 10000
15000
Fixed Expenses Projected Optimal Price 20000
Advertising $10,000.00 $10,000.00 25000
Administrative $10,000.00 $10,000.00 30000
Miscellaneous $5,000.00 $5,000.00
Total Fixed Expenses $25,000.00 $25,000.00
Summary Projected Optimal Price
Total Revenue $154,000.00 $136,023.63
Total Expenses $124,225.00 $99,317.27
Net Income $29,775.00 $36,706.37
Maximum Net Income
$36,706.37
1
TRUE
TRUE
100
100

2. Cost Volume-Profit Analysis
Revenue Expenses Net Income
$154,000 $124,225 $29,775
$0 $25,000 ($25,000)
$55,000 $60,438 ($5,438)
$110,000 $95,875 $14,125
$165,000 $131,313 $33,688
$220,000 $166,750 $53,250
$275,000 $202,188 $72,813
$330,000 $237,625 $92,375
Net Income Analaysis
Price Per Unit
$10 $12 $14 $16
($25,000) ($25,000) ($25,000) ($25,000)
($10,438) ($438) $9,563 $19,563
$4,125 $24,125 $44,125 $64,125
$18,688 $48,688 $78,688 $108,688
$33,250 $73,250 $113,250 $153,250
$47,813 $97,813 $147,813 $197,813
$62,375 $122,375 $182,375 $242,375