MGAB03H3 Chapter Notes - Chapter 3: Fixed Cost, Income Statement, Cud

65 views6 pages
22 Oct 2013
School
Course
Professor

Document Summary

Cost-volume-profit analysis: the technique that examines s in profits in response to. Valuable tools when considering the effects of volume on profit. Contribution margins: total revenue minus total variable costs. Contribution margin per unit (cmu): the selling price per unit minus the variable cost per unit. How much revenue from each unit sold can be applied toward fixed costs or contributed to cover them. Once fixed costs r covered the remaining is profit. (s v) = contribution margin per unit. Q = quantity of product sold (units of goods or services) We use the profit equation to plan for different volumes of operations. Cvp analysis can be performed using either. Assuming that fixed costs remain constaint; solve for expected quanitity of gooda/services that must b sold to achieve a target level of profit. Contribution margin ratio (cmr): is the percentage by which the selling price (or revenue) per unit exceeds the variable cost per unit.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions