cost accounting 14e Cost-Volume-Profit Analysis参考.ppt

Cost-Volume-Profit Analysis The Break-Even Point The break-even point is the point in the volume of activity where the organization’s revenues and expenses are equal. Contribution-Margin Approach Consider the following information developed by the accountant at Curl, Inc.: Contribution-Margin Approach For each additional surf board sold, Curl generates $200 in contribution margin. Contribution-Margin Approach Contribution-Margin Approach Here is the proof! Contribution Margin Ratio Calculate the break-even point in sales dollars rather than units by using the contribution margin ratio. Contribution Margin Ratio Equation Approach Graphing Cost-Volume-Profit Relationships Viewing CVP relationships in a graph gives managers a perspective that can be obtained in no other way. Consider the following information for Curl, Inc.: Cost-Volume-Profit Graph Profit-Volume Graph Target Net Profit We can determine the number of surfboards that Curl must sell to earn a profit of $100,000 using the contribution margin approach. Equation Approach Applying CVP Analysis Safety Margin The difference between budgeted sales revenue and break-even sales revenue. The amount by which sales can drop before losses begin to be incurred. Safety Margin Curl, Inc. has a break-even point of $200,000. If actual sales are $250,000, the safety margin is $50,000 or 100 surf boards. Changes in Fixed Costs Curl is currently selling 500 surf boards per month. The owner believes that an increase of $10,000 in the monthly advertising budget, would increase bike sales to 540 units. Should we authorize the requested increase in the advertising budget? Changes in Fixed Costs Changes in Fixed Costs Changes in UnitContribution Margin Because of increases in cost of raw materials, Curl’s variable cost per unit has increased from $300 to $310 per surf board. With no change in selling price per unit, what will be the new break-even point? Predicting Profit Given Expected Volume Predicting Profit G