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Monday_Powerpoint_Slides_CH_6

# Monday_Powerpoint_Slides_CH_6 - Announcements HW grades...

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Announcements HW grades posted on courses.bus.wisc.edu Let me know if you see errors. Contact Prof. Davis or Jodi Bellovary to see your exam. Contact information for both is on course website or syllabus.

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CVP Analysis Day 2
Basics CVP Friday How do you calculate CM? CM ratio= Total CM/Sales CM Ratio= Unit CM/Unit Sales Price Break Even Point? Equation Method Sales=Var. Exp + Fixed Exp + Profits Contribution Margin Method BE Units= Fixed Expenses/Unit CM BE Total= Fixed Expenses/CM Ratio

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6-10 Pringle Company distributes a single product. The company's sales and expenses for a recent month follow: 1. What is the monthly break even? 2. What is the total CM at Break Even? 3. What is the CM Ratio? If monthly sales increase by \$80,000 and there is no change in fixed expenses, by how much would you expect net operating income to increase?
Target Profit Analysis

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Target Profit Analysis The equation and contribution margin methods can be used to determine the
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