ACC 220 WEEK 6 ASSIGNMENT - COST, VOLUME, AND PROFIT FORMULAS

ACC 220 WEEK 6 ASSIGNMENT - COST, VOLUME, AND PROFIT FORMULAS

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Week 6 Assignment: Cost, Volume, and Profit Formulas Resources: Ch. 6 of Essentials of Accounting Due Date: Day 7 [Individual] forum Review the following illustrations found in Ch. 6 of your text: 6-12, 6-15, 6-17, 6-18, 6-19, & 6-20. Write a 350- to 700-word paper, using APA guidelines, that addresses the following: o Explain the components of cost-volume-profit analysis. o What does each of the components mean? o Based on the formulas you have reviewed, what happens to contribution margin per unit when unit selling prices increase? Illustrate your explanation with an example from a fictitious company of how an increase in unit selling prices might affect contribution margin. o When fixed costs decrease, what does this do for sales? Illustrate your explanation with an example from a fictitious company. o Define contribution ratios. o What happens to contribution ratios as one of the components changes? Post your paper as a Microsoft© Word attachment.
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