Change in fixed cost, Cost Accounting

Assignment Help:

Change in Fixed Cost

In graph yx shows the existing profit curve for a company along with a fixed cost OY break=-even point B, margin of safety M; profit SX whereas sales volume is OS. A change in fixed cost does not affect the contribution to sales ratio that is only influenced via variable cost and selling price per unit.

1255_Change in Fixed Cost.png

 

Line y1, x1 displays the new profit curve while fixed costs are reduced to OY1. The following must be noted

  • The profit at sales volume OS has raised to SX
  • Break-even point has been lowered to B
  • Margin of safety has been rise to M1
  • Contribution sales ratio is not changed

Related Discussions:- Change in fixed cost

Calculate the annual profit from the farm , Xander Harris is considering wh...

Xander Harris is considering whether to buy a corn and soybean farm in Iowa. The farm will cost $800,000, and Xander will be able to pay this from profits his recently deceased mot

Labour costs, what are the classifications of labour costs? what is employe...

what are the classifications of labour costs? what is employee psyche?

Cost accounting, some clarificationon how to compute closing stock and open...

some clarificationon how to compute closing stock and openning stock using marginal costing technique and absorption.

Cost sheets, Describe the information about cost sheets? Ans) Cost sheet...

Describe the information about cost sheets? Ans) Cost sheet having of the direct and indirect expenses acquired in producing a given product and classifying the expenses acquire

Calculate the approximate yield to maturity of the bonds, Netflix Inc wants...

Netflix Inc wants to issue discount bonds with a market value equal to 45% of their face value. The income tax rate of Netflix is 30%. The bonds will carry 3.5% coupon, paying inte

What is the carrying value of the asset, Dolphin Company uses special strap...

Dolphin Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2013 for $8,000,000 and had an estimated useful life of 8 years w

Prepare an amortization table, On January 1, 2012 Morgan's Motors issued $5...

On January 1, 2012 Morgan's Motors issued $500,000 of 3-year, 8% bonds when the market yield was 6%. The bond agreement stated that compounding was semi-annual with payments due on

Factory overhead, what are the examples of factory overhead

what are the examples of factory overhead

Compute the indirect production costs, The manufacturing division of an ele...

The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related cost drivers for indirect production c

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd