Question
Explain how a CVP analysis can assist management with short-term economic planning. Support your response with examples from your CVP analysis. Statement showing computations Particulars
Explain how a CVP analysis can assist management with short-term economic planning. Support your response with examples from your CVP analysis.
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| Statement showing computations | |
| Particulars | Amount |
| Revenue from Sale of umbrellas = 5,000*11 | 55,000.00 |
| Costs: | |
| Direct Materials = 5,000*3 | 15,000.00 |
| Direct Labour = 5,000*1.50 | 7,500.00 |
| Variable Manufacturing Overhead = 5,000*.40 | 2,000.00 |
| Variable Selling expenses = 5,000*1.30 | 6,500.00 |
| Fixed Administrative Costs | 15,000.00 |
| Total Costs | 46,000.00 |
| Net Income from special Order = 55,000 - 46,000 | 9,000.00 |
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Forensic Accounting
Authors: Greg Shields
1st Edition
1727480988, 978-1727480986
