chapter%2040-1 - September 7, 2011 Accounting 2102 1...

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Unformatted text preview: September 7, 2011 Accounting 2102 1 Chapter 4 Cost-Volume-Profit Analysis: A Managerial Planning Tool the income statement . . . How is a normal income statement arranged? The normal income statement doesnt really equip managers with the operating knowledge they need to make informed decisions. What do you think a manager would need to make informed decisions? September 7, 2011 Accounting 2102 2 Contribution Margin Income Statement Contribution Margin Income Statement September 7, 2011 Accounting 2102 3 Sales Revenue (SR) Operating Income (op y) What does the Contribution Margin Contribution Margin tell us? 1. 2. Why would this information be important to a manager? Calculating Break Even and Target Profit in Sales Revenue Expenses = Operating Income September 7, 2011 Accounting 2102 4 Quench Your Thirst, LLC September 7, 2011 Accounting 2102 5 You have decided to open a lemonade stand. After intensive market research, you have determined that your target market is willing to pay $1.50 per serving of have determined that your target market is willing to pay $1....
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This note was uploaded on 09/07/2011 for the course ACCT 2102 taught by Professor Farmer during the Spring '08 term at University of Georgia Athens.

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chapter%2040-1 - September 7, 2011 Accounting 2102 1...

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