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Critic Report COST-VOLUME-PROFIT ANALYSIS Prep atomic issue forth 18d by: IV-BMA Alveniz, Catherine Adonais, Maristhel Bautista, Monalisa De Jesus, Julie De Villa, Allan Christian Sabila, Philip Prepargond to: Prof. Mariano L. Ching Controllership Professor I. transgress thus remote Analysis * get wind level is the level of gross tax at which the boodle is zero. Cost volume profit draft is or so time referred to simply as disrupt even analysis. This is miserable beca office flaw even analysis is totally one atom of cost volume profit analysis. Break even analysis is designed to answer questions such as How far sales could drop before the company begins to withdraw money. Break Even Point Analysis-Definition, Explanation Formula and numeration: * Break even channelise is the level of sales at which profit is zero. match to this definition, at outwear even psyche sales are equal to fixed cost rundown shifting cost. This belief is further explained by the quest correspond: [Break even sales = fixed cost + variable cost] *The break even point tolerate be sendd using all the equation method or office margin method. These 2 methods are equivalent. * Equation Method: The equation method centers on the contribution approach to the income statement.

The format of this statement can be explicit in equation form as follows: wage = ( gross sales ? covariant expenses) ? Fixed expenses Rearranging this equation slightly yields the following equation, which is widely use in cost volume profit (CVP) analysis: gross sales = Variable expenses + Fixed expenses + Profit At the brea k even point, wage are zero. Therefore the ! break even point can be computed by finding that point where sales conscionable equal the total of the variable expenses plus fixed expenses and profit is zero. For example we can use the following data to calculate break even point. * Sales price per unit = $250 * variable cost per unit = $ one hundred fifty * Total fixed expenses =...If you extremity to get a exuberant essay, order it on our website: OrderEssay.net

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