Cost Volume Profit Analysis

COST- VOLUME- PROFIT ANALYSIS- THEORIES 1. How may may the follow follow!" !" #e $%e& ! 'al'$la 'al'$la(!" (!" the #)ea* #)ea*-e+e! -e+e! ,o!t% ,o!t% ! $!t $!t FIE/ COSTS



C.M. PER UNIT

FIE/ COSTS

C.M. PER UNIT

a. /e!om!ato)

N$me)ato)

'. N$me)ato)

Not $%e&

#. /e!om!ato)

Not $%e&

&. N$me)ato)

/e!om!ato)

/

0. The 'o!t)#$ 'o!t)#$(o! (o! ma)"! ma)"! !')ea%e% !')ea%e% whe! whe! %ale% +ol$me +ol$me )ema!% )ema!% the %ame %ame a!&



a. Va)a#le 'o%t ,e) $!t &e')ea%e%

'. Fe& 'o%t &e')ea%e%

#. Va)a#le 'o%t ,e) $!t !')ea%e%

&. Fe& 'o%t !')ea%e%

A

2. The ,e%o amo$! amo$!tt of %ale% !ee&e& !ee&e& to a3a! a3a! ,)o4t ,)o4t % 'al'$lat 'al'$late& e& #y &+&!" &+&!" the 'o!t)#$ 'o!t)#$(o! (o! ma)"! )a(o !to



a. Fe& 'o%t

'. /e%)e& ,)o4t ,l$% 4e& 'o%t

#. /e%)e& ,)o4t

&. /e%)e& ,)o4t le%% 4e& 'o%t

C

5. At #)ea* #)ea*-e+e! -e+e! ,o!t6 ,o!t6 4e& 4e& 'o%t 'o%t % % alway alway%%



a. Le%% th tha! th the 'o 'o!t)#$(o! ma ma)"!

'. Mo Mo)e th tha! th the 'o 'o!t)#$(o! ma ma)"!

#. E7$al to the 'o!t)#$(o! ma)"!

&. Mo)e tha! the +a)a#le 'o%t%

8

9. The 'o!t) 'o!t)#$(o! #$(o! ma)"! ma)"! )a(o )a(o alway alway%% !')ea%e% !')ea%e% whe! the the a. 8)ea* 8)ea*-e -e+e +e! ! ,o!t ,o!t !') !')ea ea%e %e%% #. 8)ea* 8)ea*-- e+e! e+e! ,o!t ,o!t &e')ea &e')ea%e% %e% '.

Va)a#le a)a#le 'o%t% 'o%t% a% a ,e)'e!t ,e)'e!ta"e a"e of of !et %ale% &e')ea%e &e')ea%e

&. Va)a#le a)a#le 'o%t% 'o%t% a% a ,e)'e!t ,e)'e!ta"e a"e of !et %ale% %ale% !')ea !')ea%e %e 

C

:. If the 'o%t% 'o%t% a3e!&a!t a3e!&a!t to to a ,)o&$'t ,)o&$'t !')ea%e% !')ea%e% whle whle +a)a#le +a)a#le 'o%t% 'o%t% a!& %ale% %ale% ,)'e )ema!% )ema!% 'o!%ta!t6 what wll ha,,e! to ;1< 'o!t)#$(o! ma)"! a!& ;0< #)ea*-e+e! #)ea*-e+e! ,o!t CON CONT. MAR=I AR=IN N a.

I!')ea%e

#. /e')ea%e 

8RE 8REA>-E A>-EVE VEN N POIN OINT

CONT.M NT.MAR AR=I =IN N

8RE 8REA>-E A>-EV VEN POINT OINT

/e')ea%e

'. U!'ha!"e&

I!')ea%e

I!')ea%e

&. U!'ha!"e&

U!'ha!"e&

C

?. If the 4e& 'o%t% 'o%t% fo) fo) a ,)o&$'t ,)o&$'t &e')ea%e &e')ea%e a!& the +a)a# +a)a#le le 'o%t% 'o%t% ;a% a ,e)'e!ta" ,e)'e!ta"e e of %ale% ,e%o%< ,e%o%< &e')ea%e6 what wll #e the t he e@e't o! the 'o!t)#$(o! ma)"! )a(o a!& the #)ea*-e+e! #)ea*-e+e! ,o!t6 )e%,e'(+ely C.M. RATIO



8REA>-EVEN POINT

C.M. RATIO

8REA>-EVEN POINT

a.

I!')ea%e&

/e')ea%e&

'.

/e /e')ea%e&

/e')ea%e&

#.

/e')ea%e&

I!')ea%e&

&.

I!')ea%e&

I!')ea%e&

A

. Bh'h of the follow!" wo$l& 'a%e the #)ea*-e+e! ,o!t to 'ha!"e a. Sale% !')ea%e& #. Total ,)o&$'(o! &e')ea%e& '.

Total +a)a#le 'o%t% !')ea%e a% a f$!'(o! of h"he) ,)o&$'(o!

&. Fe& 'o%t% !')ea%e& 

/

. The metho& of 'o%t a''o$!(!" that le!&% t%elf to #)ea*-e+e! a!aly%% % a.

Va)a#le

#. Sta!&a)& 

'. A#%ol$te &. A#%o),(o!

A

1D. Ea'h of the follow!" wo$l& a@e't the #)ea*-e+e! ,o!t e'e,t a 'ha!"e ! the a.

N$m#e) of $!t% %ol&

#. Va)a#le 'o%t ,e) $!t 

'. Total 4e& 'o%t &. Sale% ,)'e ,e) $!t

A

11. I! %e!" ea)!!"% o#e'(+e%6 ma!a"eme!t m$%t 'o!%&e) all of the%e tem% e'e,t a. Sale% +ol$me a3a!a#le ! the ,)e%e!t ,la!t #. The #)ea*-e+e! ,o!t '.

I!&'e% ! !&$%t)al ,)o&$'(o!

&. Ea)!!"% o) lo%%e% fo) a "+e! %ale% +ol$me le+el. 

C

10. To o#ta! the #)ea*-e+e! ,o!t %tate& ! te)m% of ,e%o% of %ale%6 total 4e& 'o%t% a)e &+&e& #y wh'h of the follow!" a. Va)a#le 'o%t ,e) $!t #. ;%ale% ,)'e ,e) $!t G+a)a#le 'o%t ,e) $!t