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
(a) Describe briefly how the following are used in the accounting for labour: (i)   time sheets (ii)   job cards. (b) The following details relate to the labour in a produ

What is the easiest of calculate equivalents before producing a process account 2

Explanations on the correct fixation of selling price

Direct Materials Total Variance Direct materials total variances refer to the difference between the standard direct material cost of the actual production volume and the actu

DEFINITION OF BUDGET As per the Institute of Cost & Management (ICMA), London, a BUDGET is 'a quantitative statement and / or financial, prepared and approved prior to a defin

1. Pardee Company plans to sell 12,000 units during the month of August. If the company has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at

Gomez incurred $350,000 of research and development costs to develop a product for which a patent was granted on January 2, 2008. Legal fees and other costs associated with the re

By the discussions we had previous, it is not tough to come to the conclusion that numerous factors influence the fund or net working capital needs. Fund needs vary along with t

Devprop Leasing Co.is an industrial property development company, that typically develops warehouse and industrial complexes in new or underdeveloped areas, operates these complexe

What type of activity could a company engage in to improve their cash flows in their Cash Flows Statement? Is this ethical? Could borrowing money make the cash from operations be