{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# CH3 - A FC/VC COST STRUCTURES B OPERATING LEVERAGE VI CVP...

This preview shows pages 1–2. Sign up to view the full content.

ACCT 347 LECTURE NOTE, CHAPTER # 3 C-V-P ANALYSIS I. Contribution Margin (CM) 1) CM/unit Selling Price/unit - VC/unit = CM/unit 2) CM Ratio CM/unit -------- = CM Ratio SP/unit II. CVP Assumptions III. Break-Even Point (BEP) Point of activity (volume) where total revenue and total expense are equal. Three Methods 1) Equation Method 2) CM Method 3) Graphic Approach IV. Sensitivity Analysis and Uncertainty V. COST PLANNING & CVP

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: A. FC/VC COST STRUCTURES B. OPERATING LEVERAGE VI. CVP ANALYSIS IN SVC & Nonprofit ORGANIZATIONS EX. Richard plans to sell a toy rocket at flee market. He may purchase those rockets at 50c each. The booth rental is \$200. The rocket will be sold at 90c. How many rockets must be sold to break even? (First, develop CVP formula by equation method and solve)...
View Full Document

{[ snackBarMessage ]}