write:Recall that F = $360 000. Q1 2: Using CVP to Determine Target Cost Levels Use the CVP formula for units but solve for V: Q = 6 000 units If Bill can reduce his variable costs to $

2e Slide # 11 Suppose that Bill’s marketing department says that he can sell 6
000 briefcases if the selling price is reduced to $170. Bill’s target pretax profit is $210
000. Determine the highest level that his variable costs can so that he can make his target. Recall that F = $360
000. Q1
2: Using CVP to Determine Target Cost Levels Use the CVP formula for units
but solve for V: Q = 6
000 units If Bill can reduce his variable costs to $75/unit
he can meet his goal.

 

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