Cost, Volume, and Profit Formulas Assignment

# Cost Volume and - 1 Assignment Cost Volume and Profit Formulas Cathy Bandelow Survey or Accounting The Maze of Numbers/ACC 220 Sophia Wilks Cost

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1 Assignment: Cost, Volume, and Profit Formulas Cathy Bandelow Survey or Accounting: The Maze of Numbers/ACC 220 May 16, 2010 Sophia Wilks

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Cost volume profit analysis studies the effects of changes in costs and volume on a business profits. Cost volume profit is made up of five basic components. Volume or level of activity is one of the basic components in a cost volume profit analysis. This sales volume component determines which figure is required to break even. It also determines which figure is required to earn a profit. The sales volume component can determined if a profit can be expected. Unit selling price is a component in the cost volume profit analysis. The unit selling price minus the total cost will determine the break even point and if the business will make a profit. The variable cost per unit is a component in the cost volume profit analysis. The variable cost component are costs that may vary in total. It also remains the same per unit at every level of activity. Total fixed costs are a component in the cost volume profit analysis. These costs remain
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## This note was uploaded on 11/14/2010 for the course ACC225 ACC225 taught by Professor Smith during the Spring '10 term at University of Phoenix.

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Cost Volume and - 1 Assignment Cost Volume and Profit Formulas Cathy Bandelow Survey or Accounting The Maze of Numbers/ACC 220 Sophia Wilks Cost

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