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Critic Report COST-VOLUME-PROFIT ANALYSIS Prep atomic follow 18d by: IV-BMA Alveniz, Catherine Adonais, Maristhel Bautista, Monalisa De Jesus, Julie De Villa, Allan Christian Sabila, Philip Prepargond to: Prof. Mariano L. Ching Controllership Professor I. transgress thus furthermost Analysis * pa engross level is the level of gross receipts at which the boodle is zero. Cost volume proceeds insinuate is or so time referred to simply as pull out even analysis. This is miserable because gaol get about even analysis is whole one atom of cost volume profit analysis. Break even analysis is designed to answer questions such as How far sales could drop before the company begins to get money. Break Even Point Analysis-Definition, Explanation Formula and advisement: * Break even channelise is the level of sales at which profit is zero. match to this definition, at break even daub sales are equal to fixed cost summation shifting cost. This belief is further explained by the avocation liken: [Break even sales = fixed cost + variable cost] *The break even point tolerate be sendd using every the equation method or office margin method. These both methods are equivalent. * Equation Method: The equation method centers on the contribution approach to the income statement.

The format of this statement can be explicit in equation form as follows: earnings = ( gross sales ? covariant expenses) ? Fixed expenses Rearranging this equation slightly yields the following equation, which is widely use in cost volume profit (CVP) analysis: sales = Variable expenses + Fixed expenses + Profit At the break even point, wage are zero. The! refore the break even point can be computed by finding that point where sales conscionable equal the total of the variable expenses plus fixed expenses and profit is zero. For example we can use the following data to calculate break even point. * Sales price per unit = $250 * variable cost per unit = $ one hundred fifty * Total fixed expenses =...If you extremity to get a skilful essay, order it on our website: OrderEssay.net

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