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Unformatted text preview: earn a target net income, including when an income tax rate is given. 6. Compute the breakeven point for a multiple product company and explain the effects of shifts in the sales mix on the breakeven point. E7-17, P7-25, P7-26, S3-P5, S7-P10, S8-P11, S9-P12 7. Compute the Margin of Safety and explain its significance. E7-7, S6-P8, S6-P9 8. Compute Operating Leverage and understand how it is used to predict a change in income. E7-8, E7-15 9. Determine the Indifference Point and explain its significance when there are two options with different cost structures. P7-31, P7-32 10. Explain the importance of considering contribution margin when structuring sales commissions. 11. Explain how CVP analysis deals with uncertainty. Problems on Supplementary Handout. plus problems and exercises noted under specific items above. RF 10/11...
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This note was uploaded on 03/03/2012 for the course ACCT 2460 taught by Professor Farrar during the Winter '12 term at Conestoga.
- Winter '12
- Cost Accounting