Question
could someone give me a better explanation of the answer of these exercises. THEIR ANSWERS ARE CORRECT I JUST NEED EXPLANATION. (please be abundant, in
could someone give me a better explanation of the answer of these exercises. THEIR ANSWERS ARE CORRECT I JUST NEED EXPLANATION.
(please be abundant, in own words and easy to extend and explain)
1) Cost-volume-profit(CVP) analysis is a key factor in many decisions, including choice of products lines, pricing of products, marketing strategy, and use of productive facilities. a calculation used in a CVP analysis is the breakeven point. Once the breakeven point has been reached, operating income will increase by the
- Contribution margin per unit for each additional unit sold.
2) The brakeven point in units sold is 44,000. if fixed costs are equal to $880,000 annually and variable costs are $10 per unit, what is the contribution margin per unit. ?
- $20.00
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