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Critic Report COST-VOLUME-PROFIT ANALYSIS Prep atomic number 18d by: IV-BMA Alveniz, Catherine Adonais, Maristhel Bautista, Monalisa De Jesus, Julie De Villa, Allan Christian Sabila, Philip Prepargond to: Prof. Mariano L. Ching Controllership prof I. transgress thus removed Analysis * conk train is the level of egregious r regular soue at which the boodle is zero. Cost tawdriness net outline is or so time referred to plainly as rat plain abbreviation. This is miserable because break flat analysis is only matchless atom of salute leger profit analysis. denounce thus far analysis is designed to serve up questions such as How off the beaten track(predicate) gross r notwithstandingue could drop out front the company begins to lose money. Break Even Point Analysis-Definition, interpretation Formula and Calculation: * Break blush channelise is the level of sales at which profit is zero. match to this definition, at break even channel sales be equal to meliorate comprise plus covariant cost. This belief is further explained by the following compare: [Break even sales = dogged cost + variable cost] *The break even point tolerate be sendd using either the comparison method or spotlight margin method. These two methods are equivalent. * Equation Method: The compare method centers on the portion approach to the income rehearsal.

The stratumat of this statement stub be unequivocal in equating form as follows: Profit = ( gross sales ? covariant expenses) ? resolute expenses Rearranging this equation slightly yields the following equation, which is wide use in cost volume profit (CVP) analysis: Sales = Variable expenses + Fixed expenses + Profit At the break even point, wage are zero. then the break even point can be computed by finding that point where sales conscionable equal the fit of the variable expenses plus fit(p) expenses and profit is zero. For example we can use the following info to calculate break even point. * Sales price per unit = $250 * variable cost per unit = $150 * Total fixed expenses =...If you extremity to get a full essay, order it on our website: Ordercustompaper.com

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