Profit Calculation Question 2022

1
Question 1
A
Step 1: Calculate Revenue
Step 2: Calculate variable costs
Step 3: Get the contribution margin
Step 4: less fixed cost from contribution margin
Profit
B
Profit = Revenue- Variable cost-
Fixed cost (Metwally, 2011)
c Profit calculation
Number
of units
Sales
per
unit Total Sales Ref
Revenue a b a*b E4=total sales
Cost of sale
Material cost a c a*c
E7= Total
material cost
Labor cost a d a*d
E8= Total labor
cost
Profit calculation
Revenue (a)=Units sold *unit
Variable costs(b) = Units
sold*material cost units sold* labour
Contribution margin (c) = a-b
fixed cost = d
Profit = c-d

2
Total variable cost (a+c)+(a*d)
E9=Total variable
cost
Contribution E4-E9
E11=Total
contribution
Less:
Fixed costs FC E14= fixed cost
Profit (loss) E11-E14 E14 = Profit
D Profit calculation
Number
of units
Sales
per
unit Total Sales Ref
Revenue 12,000 $0.65 $7,800.00 E4=total sales
Cost of sale
Material cost 12,000 $0.15 $1,800.00
E7= Total
material cost
Labor cost 12,000 $0.10 $1,200.00
E8= Total labor
cost
Total variable cost $3,000.00
E9=Total variable
cost
Contribution $4,800.00
E11=Total
contribution
Less:
Fixed costs $10,000.00 E14= fixed cost
Profit (Loss) ($5,200.00) E14 = Profit(loss)

3
Question 2
Using goal seek
Prooduction
Sales
per
unit Total Sales Ref
Revenue 25,000 $0.65 $16,250.00 E4=total sales
Cost of sale
Material cost 25,000 $0.15 $3,750.00
E7= Total material
cost
Labor cost 25,000 $0.10 $2,500.00 E8= Total labor cost
Total variable cost $6,250.00
E9=Total variable
cost
Contribution $10,000.00
E11=Total
contribution
Less:
Fixed costs $10,000.00 E14= fixed cost
Profit (Loss) $0.00 E14 = Profit
Question 3
Using goal-seek (Ayer, 2015)
Profit and loss model
Number of Non-
members Unit price Total
Revenue $50.50 $75.00 $3,787.13
Costs
Registration $50.50 $8.50 $429.21
Continental breakfast $50.50 $4.00 $201.98
Lunch $50.50 $7.00 $353.47
Parking $50.50 $5.00 $252.48
Variable costs $1,237.13
Contribution margin $2,550.00

4
Fixed costs
Rental cost for the auditorium $2,400.00
Speaker Costs $150.00
Total fixed costs $2,550.00
Profit $0.00
Question 4
Profit and loss model
Number of
Non-members Members Unit price Total
Revenue 127.00 $75.00 $9,525.00
Costs
Registration 127.00 $8.50 $1,079.50
Continental breakfast 127.00 60.00 $4.00 $748.00
Lunch 127.00 60.00 $7.00 $1,309.00
Parking 127.00 45.00 $5.00 $796.50
Refunds
Non-members 12.70 $37.50 $476.25
Variable costs $4,409.25
Contribution margin $5,115.75
Fixed costs
Rental cost for the
auditorium $2,400.00
Speaker Costs $150.00
Total fixed costs $2,550.00
Profit $2,565.75

Non-
attendance 10% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% 24.00%
Attendees
80 $930.00 $818.00 $706.00 $594.00 $482.00 $370.00 $258.00 $146.0
85 $1,147.50 $1,028.50 $909.50 $790.50 $671.50 $552.50 $433.50 $314.5
90 $1,365.00 $1,239.00 $1,113.00 $987.00 $861.00 $735.00 $609.00 $483.0
95 $1,582.50 $1,449.50 $1,316.50 $1,183.50 $1,050.50 $917.50 $784.50 $651.5
100 $1,800.00 $1,660.00 $1,520.00 $1,380.00 $1,240.00 $1,100.00 $960.00 $820.0
105 $2,017.50 $1,870.50 $1,723.50 $1,576.50 $1,429.50 $1,282.50 $1,135.50 $988.5
110 $2,235.00 $2,081.00 $1,927.00 $1,773.00 $1,619.00 $1,465.00 $1,311.00 $1,157.0
115 $2,452.50 $2,291.50 $2,130.50 $1,969.50 $1,808.50 $1,647.50 $1,486.50 $1,325.5
120 $2,670.00 $2,502.00 $2,334.00 $2,166.00 $1,998.00 $1,830.00 $1,662.00 $1,494.0
125 $2,887.50 $2,712.50 $2,537.50 $2,362.50 $2,187.50 $2,012.50 $1,837.50 $1,662.5
130 $3,105.00 $2,923.00 $2,741.00 $2,559.00 $2,377.00 $2,195.00 $2,013.00 $1,831.0
135 $3,322.50 $3,133.50 $2,944.50 $2,755.50 $2,566.50 $2,377.50 $2,188.50 $1,999.5
140 $3,540.00 $3,344.00 $3,148.00 $2,952.00 $2,756.00 $2,560.00 $2,364.00 $2,168.0
145 $3,757.50 $3,554.50 $3,351.50 $3,148.50 $2,945.50 $2,742.50 $2,539.50 $2,336.5
150 $3,975.00 $3,765.00 $3,555.00 $3,345.00 $3,135.00 $2,925.00 $2,715.00 $2,505.0
155 $4,192.50 $3,975.50 $3,758.50 $3,541.50 $3,324.50 $3,107.50 $2,890.50 $2,673.5
160 $4,410.00 $4,186.00 $3,962.00 $3,738.00 $3,514.00 $3,290.00 $3,066.00 $2,842.0

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References
Ayer, G. (2015). Excel in Excel®!*. Energy Engineering, 112(2), 14-25. doi:
10.1080/01998595.2015.11090950
Metwally, K. (2011). Understanding Internal Markets Through Franchise Contribution Margin
Analysis. SSRN Electronic Journal. doi: 10.2139/ssrn.1770942