Lesson ProgressPhase 5 of 6
Phase 5Assessment
Assessment: CVP Model Construction
Demonstrate understanding through formative assessment and peer evaluation
Assessment: CVP Decision Readiness
This check measures whether you can make and defend pricing choices using the exact flow from this lesson.
- Compare contribution margin dollars and ratios across options.
- Rank break-even difficulty under shared fixed costs.
- Test options against a real capacity limit.
- Reverse-solve for target profit using required price or required units.
Lesson 3 Mastery Check
CM, break-even, feasibility, and reverse-solving decisions
1. If Sarah charges $1,350 and variable cost is $880, what is contribution margin per project?
2. At a $1,500 price with $880 variable cost, what is the contribution margin ratio?
3. With fixed costs of $8,100 and CM of $320 at a $1,200 price, what is break-even volume?
4. Which option gives the easiest break-even target under the same $8,100 fixed costs?
5. Sarah can complete at most 24 projects per month. Which price option is not feasible?
6. At a $1,350 price and 24 projects, what is Sarah's monthly profit?
7. Sarah calculates that hitting $12,000 profit at the $1,350 price requires 43 projects. TechStart's capacity is 24 projects. What is the correct decision?
8. If Sarah is capped at 24 projects and wants $12,000 profit, what price per project is required?
9. Why is a capacity reality check required after break-even calculations?
10. TechStart can only complete 20 projects next month due to Alex's vacation. An investor asks which pricing strategy Sarah should use. What is the BEST answer?
0 of 10 questions answered
Professional Relevance
These are the same calculations analysts use when investors ask:
- "Which price option is safest at current capacity?"
- "How far are we from break-even under each strategy?"
- "What price or volume do we need to hit our target profit?"
Looking Ahead
In Lesson 4, you'll automate today's reverse-solving with Goal Seek so Sarah can answer investor "what-if" questions in seconds.