chapter_3

1 10509 110929 pm 102209 103402 pm revised pages

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: entify each of the following profit equation components on the graph that follows: a. The total cost line. b. The total revenue line. c. The total variable costs area. d. Variable cost per unit. e. The fixed costs area. f. The break-even point. g. The profit area (range of volumes leading to profit). h. The loss area (range of volumes leading to loss). cor50782_ch01_001-072.indd 1 (L.O. 1) lan27114_ch03_080-109.indd 96 ✓ Related Resources See pages 000 to 000 of the Annotated Instructor’s Edition for general suggestions related to the chapters in Part One. 1 10/5/09 11:09:29 PM 10/22/09 10:34:02 PM REVISED PAGES Chapter 3 Fundamentals of Cost-Volume-Profit Analysis $ PART 1 97 Orientation Preparing and Organizing Yourself for Success in College 0 Volume 3-20. Profit Equation Components Identify the letter of each profit equation component on the graph that follows. (L.O. 1) CHAPTERS $ IN PART ONE 1 Making Yourself Successful in College Line d 2 Approaching College Reading and c Developing a College-Level Vocabulary 3 Approaching College Assignments: Reading Textbooks and Following Directions Area e g b Area f a Volume 3-21. Basic Decision Analysis Using CVP Anu’s Amusement Center has collected the following data for operations for the year: Total revenues . . . . . . . . . . . . . . . . . . Total fixed costs. . . . . . . . . . . . . . . . . Total variable costs . . . . . . . . . . . . . . Total tickets sold . . . . . . . . . . . . . . . . cor50782_ch01_001-072.indd 1 lan27114_ch03_080-109.indd 97 $800,000 $218,750 $450,000 50,000 ✓ Related Resources See pages 000 to 000 of the Annotated Instructor’s Edition for general suggestions related to the chapters (L.O. 1) in Part One. S 1 10/5/09 11:09:29 PM 10/22/09 10:34:02 PM REVISED PAGES Part II 98 Cost Analysis and Estimation 1 Required PA a. What is the average selling price for a ticket? R T b. What is the average variable cost per ticket? c. What is the average contribution margin per ticket? d. What is the break-even point? e. Anu has decided that unless the operation can earn at least $43,750 in operating profits, she will close it down. What number of tickets must be sold for Anu’s Amusements to make a $43,750 operating profit for the year on ticket sales? Orientation (L.O. 1) 3-22. Basic CVP Analysis The manager of Kima’s Food Mart estimates operating costs for the year will include $900,000 in fixed costs. Required Preparing and Organizing Yourself a. Find the break-even point in sales dollars with a contribution margin ratio of 40 percent. b. Find the break-even point in sales dollars with a contributionin College25 percent. for Success margin ratio of c. Find the sales dollars required to generate a profit of $200,000 for the year assuming a contribution margin ratio of 40 percent. (L.O. 1) 3-23. CVP Analysis—Ethical Issues Mark Ting desperately wants his proposed new product, DNA-diamond, to be accepted by top management. DNA-diamond is a piece of jewelry that contains the DNA of a boy or girl friend, spouse, or other loved one. Top management will not approve this product in view...
View Full Document

This note was uploaded on 02/07/2014 for the course MIS 304 taught by Professor Mejias during the Spring '07 term at Arizona.

Ask a homework question - tutors are online