Mcafee

Critic Report
COST-VOLUME-PROFIT
ANALYSIS






Prep atomic number 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 far Analysis
* Break level is the level of gross revenue at which the boodle is zero. Cost volume profit outline is or so time referred to simply as break even analysis. This is miserable because break even analysis is only 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 lose money.

Break Even Point Analysis-Definition, Explanation Formula and Calculation:
* Break even channelise is the level of sales at which profit is zero. match to this definition, at break even point sales are equal to fixed cost plus variable cost. This belief is further explained by the following compare:
[Break even sales = fixed cost + variable cost]

*The break even point tolerate be sendd using either the equation method or office margin method. These two 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:
Profit = ( 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. Therefore 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 = $150 * Total fixed expenses =...If you extremity to get a full essay, order it on our website: Orderessay



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