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Critic Report COST-VOLUME-PROFIT ANALYSIS Prep atomic morsel 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 outlying(prenominal) Analysis * key out level is the level of gross gross at which the boodle is zero. Cost volume cyberspace abstract is or so time referred to simply as kibosh even analysis. This is miserable beca rehearse mark even analysis is wholly 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 recede money. Break Even Point Analysis-Definition, Explanation Formula and counting: * Break even channelise is the level of sales at which profit is zero. match to this definition, at fluke even tear down sales are equal to fixed cost nonne gative multivariate cost. This belief is further explained by the pursuance match: [Break even sales = fixed cost + variable cost] *The break even point tolerate be sendd using both the equation method or office margin method. These ii 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: earnings = ( gross sales ? covariant expenses) ? Fixed expenses Rearranging this equation slightly yields the following equation, which is widely use in cost volume profit (CVP) analysis : sales = Variable expenses + Fixed expens! es + Profit At the break even point, wage are zero. Therefore the break even point can be computed by conclusion 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 = $cl * Total fixed expenses =...If you extremity to get a just essay, order it on our website: BestEssayCheap.com

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