Cost Volume Profit Analysis

Cost Volume Profit Analysis - COST VOLUME PROFIT ANALYSIS 1...

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COST VOLUME PROFIT ANALYSIS 1 Cost Volume Profit Analysis Ty Harman 10/1/2011 ACC 220 Heath Braby There are five basic components to a cost volume profit analysis this include volume or level of activity. The volume or level of activity is what analysis has to determine how many sales the company has to do to hit their breaking even point. The company has to set the unit pricing for the material which would be the desired amount of profit that the company wants to earn. With every product that the company sells they will have a variable cost per unit which will show how or what profit to expect from a given sale at any given time for each product. The fixed cost in a company is the amount that it takes for the company to run without the products or goods sold. Sales mix is important for a company based on that no matter what the product is the amount of total profit will be the same percentage over the course of time. This is important because it gives you all the information that is needed for management to be able to give you their thoughts on what is working for the client and what is not.
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This note was uploaded on 12/18/2011 for the course ACCOUNTING 225 taught by Professor Mattwilliams during the Spring '11 term at University of Phoenix.

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Cost Volume Profit Analysis - COST VOLUME PROFIT ANALYSIS 1...

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