Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume you are a CEO of your choice of a manufacturing company. The company can be real or fictional. List your variable vs fixed costs,

Assume you are a CEO of your choice of a manufacturing company. The company can be real or fictional. List your variable vs fixed costs, and create a CVP income statement for year 1. Let your creative juices flow, but make sure the examples you use are in line with the nature of your company. The only requirements are:

Requirements:

Show your work via formulas (i.e. a + b = c) throughout.

Outline Points
1 Company name 10
2 Summary of what your company sells / produces - summarize in words what your company makes (a sentence or two is fine, can include examples). 10
3 CVP Income Statement ** 15
** Please show and quantify the following breakout of costs that feed your CVP Income Statement:
4 >> Sales 5
5 >> Variable Costs (please list a minimum of 3 individual variable costs) 10
6 >> Contribution Margin 5
7 >> Fixed Costs (please list a minimum of 3 individual fixed costs) 5
8 >> Net Income 5
9 Can you think of an industry / business that WOULD NOT benefit from CVP (cost-volume-profit) analysis? Please explain your answer. 10
TOTAL 75

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A New Auditors Guide To Planning Performing And Presenting IT Audits

Authors: Nelson Gibb, CIA, CISA, CISSP, Divakar Jain, CA, CPA, Amitesh Joshi, Surekha Muddamsetti, Sarabjot Singh

1st Edition

0894136852, 978-0894136856

More Books

Students also viewed these Accounting questions