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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.
Break-Even Chart This is a diagrammatic presentation of the relationship among costs, prices, expenses and the sales volume. A break-even chart expresses revenue and expens
Under which inventory costing method could increases or decreases in income from operations be misinterpreted to be the result of operating efficiencies or inefficiencies?
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Describe briefly the possible causes of: (i) the material usage variance, (ii) the labour rate variance, (iii) the sales volume profit variance.
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
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ANNUAL DEMAND = 2400 UNITS ORDERING COST PER UNIT = RS.4.00/- UNIT PRICE = RS 2.40/- STORAGE COST = 2% P.A INTEREST RATE = 10 % P.A LEAD TIME = HALF MONTH CALCULATE ECONOMIC ORDER
Reamer Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next ye
If a company trades in a building towards a new building and does not recognize a gain or loss (because of code section 1031), will this transaction affect the cash flows statement
ANGLE OF INCIDENCE CHART
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