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The cost-volume-profit relationships Budget change 2007 Real 2007 Percentage sales 100000 70000 30% variable costs 40,000 28000 contribution margin 60000 42000 fixed costs 40,000 40000

The cost-volume-profit relationships

Budget change

2007

Real 2007

Percentage

sales

100000

70000

30%

variable costs

40,000

28000

contribution margin

60000

42000

fixed costs

40,000

40000

operating profit

20000

2000

90%

interest expense interest expense

15000

15000

profit before ISR and RUT

5000

(13000)

360%

ISR and RUT (35% and 10%)

2250

-

net income

2750

(13000)

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