Looking at a CVP chart, a manager says, According to this chart, 40,000 units of product per

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Looking at a CVP chart, a manager says, "According to this chart, 40,000 units of product per year result in a profit of $300,000. After our stock issue is completed weTl have the money to add enough factory space to triple our production. Therefore within two years we should be earning a profit of over $1 million." What factors is the manager neglecting to assess?

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Cost Accounting

ISBN: 9780538817646

2nd Edition

Authors: Les Heitger, Pekin Ogan, Serge Matulich

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