University:
York University
Course:
SB/ACTG 2020 | Management Accounting Concepts
Academic year:

2024
Views:

377

Pages:

1
Author:

Niklas

topic 10: chpt 7 (mco, sect B&C) Cost-volume-profit (CVP) analysis this technique is used by managerial accountants. It summarizes the effects of onanges in an organizations volume of activity on revenus, and profe break-even pont volume of activity where the organisation revenues xρεται ότι ερω this amount of ecies, the organization hot no profit or less, if brek even assumphons underlying CVP Finalysis selling pros is constant throughout the artice relevant range costs ses linear over the relevant range in wu-product comparics, the sains mus is constant manufacturing firma, invertoria de not change Le Changes in Fixed Costs Sdes revenue 200×$16 Less varable epem (0.000 x$10) Lens the expenses Poft total contribution margin total saleς πένειμε πίτας τοταй матовое крепина Contribution-Margia Approach Current Praprose $125,000 82000 $40,000 Sales 1250,000 279.900 as variable Contribution magin $100,000 4000 Net inciome $1,100 500 Fquation Mettrod Operating leverage Profit sales (variable expenses + find expenses) is greatest in teme organsaction sostinect machure a large proportion of fed cots, proportion of variable costs, and the resulting high-contributionmarginrat operating leverage factor contribution margn net incame -30-20 sales per veit auf bound 500 vondale cat per fund coat ($500) (8500) $60,000 $300 00-5310-3-21200 sales revenuesonidele experiend expenast pratit [$200x)$80,000 soles variable expenses + Avad seреганя+0 soins total costr sales 400 4500 vorkale 4008300 (300,000) ¥80,000 cineribition margin Axed corts profe 1400 aurt bearda fued corts break-even point in units). to find now on ant, ratio contribution marg coat siruchure & operating leverage cost benediga afirmis cast structure paaye an important it in therming in cast-sen-profit remon Company with proportionately hy fed cute has rovdy kigh-opening lowrage Resalts of high operating leverage that the fem can generats a large percentage inesate net income, from a reativey anall perartage intain as revise. However, company am high operating leverage has a shlyhigh pashchartais is rat to the fim it fived casts increase, the breeds Increase if selling price per unit increases, brotexn port (in on rato units and to cam the aged profit freed openwes pr unt cxenbution magh margin of safely the difference the bulgere exits revente reseven arv CVP con also be applied to multis products actuation sing multiple produits, native proportion of noch ge of probate and used to compute a weighin-average unt intribution margin Carl, Inc. Safety Margin brusk-even poof of 5700,001 in solcs. If actual sales are $259.000, the anfity margin is 550.000, пе 100 sart beards. Lates 200.00 250.000 Lessons expenses Contribution margs 80,000 180080 Less: fed expenses 80.000