AFM481 Lecture 13: chapter 3.3

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28 Jun 2018

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Using CVP analysis to make more complex decisions

Useful for calculating the units that need to be sold to break even, achieve a target operating

income or target net income

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CVP analysis can be used to evaluate how operating income will be affected if the original

predicted data are not achieved

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CVP analysis for decision making

Decision to advertise

AFM 481 Page 5

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