PPT_for_Chapter_6_without_in-class_assignment

PPT_for_Chapter_6_without_in-class_assignment - ACC 200...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ACC 200 Fall 2010 Chapter 6 Roby B. Sawyers, CPA, Ph.D. College of Management 2 Primary Topics The Contribution Margin income statement The tools of CVP analysis Contribution margin per unit, CM ratio and Operating leverage Calculating the Breakeven Point single product and multiple products Calculating sales to reach a target profit before and after tax 3 The Traditional Income Statement Focuses on product vs. period costs: Sales- COGS (Fixed and Variable) Gross Margin- S, G, and A Expenses (Fixed and Var.) Net Income 4 The Contribution Margin Income Statement Focuses on fixed costs vs. variable costs: Sales- VC (Manufacturing and S, G and A) Contribution Margin- FC (Manuf. and S, G and A) Net Income Income Statements TRADITIONAL CONTRIBUTION MARGIN Sales Less: Cost of Goods Sold: Variable Costs Fixed Costs Total Cost of Goods Sold Gross Profit Less: S&A Costs: Variable Costs Fixed Costs Total S&A Costs Net Income Sales Less:Variable Costs: Manuf. Costs S&A Costs Total Variable Costs Contribution Margin Less: Fixed Costs: Manuf. Costs S&A Costs Total Fixed Costs Net Income $1,000 350 150 $ 500 $ 500 $ 50 250 $ 300 $ 200 $ 1,000 $350 50 $400 $600 $150 250 $400 $200 6 Contribution Margin CM is a useful tool that is used by managers to...
View Full Document

This note was uploaded on 01/11/2011 for the course ACC 200 taught by Professor Buckless during the Winter '08 term at N.C. State.

Page1 / 25

PPT_for_Chapter_6_without_in-class_assignment - ACC 200...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online