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Unformatted text preview: • Estimate the variable and fixed component of a mixed costs using regression analysis; • Understand the differences between the various methods of cost estimation. • High and low points method • Scatter graph method • Linear regression analysis 4 1. Compute breakeven point in units and in pesos; 2. Compute sales in units and in peso assuming varying desired profitability; 1. Breakeven point analysis 2. Sales in peso and in units in terms of 3. Describe breakeven point and address how change in the following items impacts breakeven: a. Increase/decrease in variable cost per unit b. Increase/ decrease in fixed costs c. Change in unit selling price; 4. Understand the shortcoming and pitfalls of breakeven analysis desired profitability expressed in: a. Peso, before income taxes b. Peso after income taxes c. Percentage of sales...
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- Spring '09
- Managerial Accounting, Scatter graph method