ACC week 3 - ACC/400 Week 3 Textbook Assignment Dr....

ACC/400
Week 3 Textbook Assignment
Dr. Samantha Duhn
March 13, 2017
Exercise 20.1 Accounting terminology
a. The level of sales at which revenue exactly equals costs and expenses.
Break Even Point
b. Costs that remain unchanged despite changes in sales volume.
c. The span over which output is likely to vary and assumptions about cost behavior generally
remain valid.
d. Sales revenue less variable costs and expenses.
e. Unit sales price minus variable cost per unit.
f. The reduction in unit cost achieved from a higher level of output.
g. Costs that respond to changes in sales volume by less than a proportionate amount. h. Operating income less variable costs.
Sales Mix
Exercise 20.7 Using Cost-Volume-profit Formulas
a. Contribution margin ratio.
(30-6)/30=.8 or 80%