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Techniques of CVP Analysis
The CVP analysis deals with the price costs structure and the sales volume and identifies the profit figure with one or other combination of these variables . the key elements in the CVP analysis are selling price sales volume variable cost per unit total fixed costs and the sales mix (if the firm is dealing with more than one product at a time ).there are two basic techniques of CVP analysis these are :
1) The contribution margin analysis
2) Profit volume ratio
3) The break even analysis .
companyXYZusesthe job oder costing system.
Quasar Computers are the first all optical notebooks and their profit largely affects the manipulations in cost, price, total revenue and quantity changes. The market analysis show
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