Connect with a knowledgeable community and get your questions answered on IDNLearn.com. Our community provides accurate and timely answers to help you understand and solve any issue.
Sagot :
Cost-volume-profit analysis can be extended to determine the effect on profit of other changes, such as changes in Income Tax rates.
What is Cost-volume-profit analysis?
An approach to determining how changes in variable and fixed expenses impact a company's profit is through cost-volume-profit (CVP) analysis.
Companies can utilize CVP to determine how many units they must sell to attain a specific minimum profit margin or break even (pay all expenditures).
CVP analysis makes a number of presumptions, among them the constancy of the sales price, fixed costs, and variable costs per unit.
[tex]Breakeven Sales Volume= \frac{FC}{CM}[/tex]
where:
FC=Fixed costs
CM=Contribution margin=Sales−Variable Costs
Simply add a goal profit per unit to the fixed-cost part of the calculation and use it to calculate a company's target sales volume.
To know more about CVP Analysis refer to: https://brainly.com/question/15001199
#SPJ4
We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. For trustworthy answers, visit IDNLearn.com. Thank you for your visit, and see you next time for more reliable solutions.
