MGAB03H3 Chapter Notes -Variable Cost, Operational Risk, Zirconium

97 views4 pages
9 Jan 2011
School
Course
Professor

Document Summary

Profit = total revenue total variable costs total fixed costs. N cvp analysis begins with the basic profit equation: N separating costs into variable and fixed categories: N contribution margin (cm) total revenues minus total variable costs. N contribution margin per unit (cmu) selling price per unit minus variable cost per unit. N both contribution margin and cmu are valuable tools when considering the effects of volume on profit. N cmu tells how much revenue from each unit sold can be applied towards fc or contributed to cover fc. V = variable cost per unit (s v) = contribution margin per unit (cmu) Q = quantity of product sold (units of goods or services) Ebt = s q v q f = (s v) q f. N cvp analysis can be performed using either: units (quantity) of product sold or revenues (in dollars)

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