Cost-Volume-Profit Analysis - Single Product Break-even Calculations.pdf

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Sales (units x selling price) xx,xxx Less: Variable costs (units x variable cost per unit xx,xxx Contribution margin xx,xxx Less: Total fixed costs xx,xxx Income before tax xx,xxx COST-VOLUME-PROFIT (CVP) ANALYSIS CVP analysis is a systematic examination of the relationships among costs, cost driver and profit. THE CONTRIBUTION MARGIN INCOME STATEMENT The costs and expenses in the Contribution Margin Income Statement are classified as to behavior (variable and fixed). The amount of contribution margin, which is the difference between sales and variable costs, is shown. BREAK-EVEN ANALYSIS Break-even point Is the sales volume level (in pesos or in units) where total revenue equals total costs. There is

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