Changes in variable cost and selling price per unit, Cost Accounting

Changes in Variable Cost and Selling Price per Unit

953_Changes in Variable Cost and Selling Price per Unit.png

The contribution sales ratio is affected by any change in variable cost or selling price per unit. This ratio is a measure of the rate at which profit is being earned and its size demonstrated via the steepness of the slope of the profit volume graph

Line xy displayed the existing profit curve for a company

Fixed costs = OY

The profit at sales volume OS = SX;

Break-even point happens at point B and the margin of safety = M

A rise in selling price and/or a falls in variable cost per unit will rises the contribution; sales ratio resulting in a new point curve yx

A falls in selling price and/or increase in variable cost per unit will decrease contribution; sales ratio resulting in a new profit curve yx2.

Posted Date: 2/7/2013 1:01:05 AM | Location : United States







Related Discussions:- Changes in variable cost and selling price per unit, Assignment Help, Ask Question on Changes in variable cost and selling price per unit, Get Answer, Expert's Help, Changes in variable cost and selling price per unit Discussions

Write discussion on Changes in variable cost and selling price per unit
Your posts are moderated
Related Questions
The following data relate to three joint products:                                                                               A                 B                     C


Analysis of stockholders equity: Star Corporation issued both common and preferred stock during 19X6. The stockholders' equity sections of the company's balance sheets at the

Jones Company operates within a monopolistically competitive industry. The estimated demand for its products is given by the following inverse demand function P = 1760 - 12Q

Master Designs Company has cash flows for operating activities of $350,000. Cash flows used for investments in property, plant, and equipment totaled $65,000, of which 70% of this

Sales Budget It provides volume of sales and sales mix of the recent operations. The sales forecast is initially prepared and upon completion the sales budget is finalized. Th

Describe the meaning of the fixed production overhead variances calculated under the standard absorption costing system and talk about their usefulness to the management of X Ltd.


Assume that $140,000 of Denham Springs school dostrict 8% bonds are sold on the bond issue date for $128,598 interest is payable semiannually, and the bonds mature in 15 years. The

Win Corporation sells a single product. Budgeted sales for the year are anticipated to be 609,725 units, estimated beginning inventory is 107,791 units, and desired ending inventor