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Changes in Variable Cost and Selling Price per Unit
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.
1. Provide at least three characteristics of a corporation (in your own words). 2. The date on which a cash dividend becomes a binding legal obligation is known
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PrivateJets (PJ) is considering expanding its operations in the corporate travel market. Currently, PJ has a capital structure with a 25% debt-equity ratio. Their levered equity
The following details were extracted from the standard cost card of a component: Raw Materials 2.82 Kgs @ Rs.4.80 Kg. Direct Labour Type I 6
mark-up of 25%
Overhead Cost Analysis and Classification Overhead costs may be analyzed into a) Which that may be directly identifiable along with a single cost center, as an example of,
Calculation of Deductions - Wages Department A range of deductions are complete from gross earnings when computing the net payment because of the employee, that deductions may
how does idle capacity effect cost behavior patterns and factory overhead application methods
What is idle time for Fast Moving,Slow Moving,Non Moving, and Dead Stock??? Thanks in Advance. Santosh K Jha
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