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Unformatted text preview: current sales volume. 3) CALCULATE 4) Cost Structure and its effect on profit as volume changes: a. •High Variable Costs as a percentage of Sales a.i. Low Contribution Margin a.ii. •Low Operating Leverage a.iii. •As sales volume changes, profit changes slowly b. •Low Variable Costs as a percentage of Sales b.i. •High Contribution Margin b.ii. •High Operating Leverage b.iii. •As sales volume changes, profit changes very quickly-Low Variable Cost per unit and a High Fixed Cost structure: High Leverage High Variable Cost per unit and a Low Fixed Cost structure: Low Leverage...
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This note was uploaded on 01/11/2012 for the course ACTG 241 taught by Professor Staff during the Fall '11 term at James Madison University.
- Fall '11