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Management has an objective to maximize the wealth of shareholder. Therefore they willing to earn profit but want to know the sales level where
Management has an objective to maximize the wealth of shareholder. Therefore they willing to earn profit but want to know the sales level where no profit or loss will be arise. Required: Explain Cost Volume profit analysis. You answer covers the following details. (a) Breakeven sales and how to calculate it. (b) How to calculate sales if management wants to earn profit. (c) Margin of safety and how to calculate it. (Marks 03)
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CostVolumeProfit CVP Analysis is a financial analysis tool used by management to understand the relationship between cost volume or sales and profit I...
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
