Cost-volume-profit (CVP) is so important for decision-making, and management needs this information reported in a CVP...

Cost-volume-profit (CVP) is so important for decision-making, and management needs this information reported in a CVP income statement format for internal use. The CVP income statement classifies costs as variable or fixed and computes a contribution margin. Please use ABC Company’s financial information to create a CVP income statement, a unit and dollar contribution margin, a unit and dollar contribution margin ratio, and break even point? . The relevant data for its products is posted below: Product JB50 JB60 Unit Selling Price of Product $20 $25 Unit Variable Costs $7 $8 Total Monthly Fixed Costs $603,000 $440,000 Units Sold 400,000 200,000.

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ekkarill92 answered 2 years ago

What is cost-volume-profit (CVP) analysis and how do companies use CVP information in decision making? Explain.

2. Cost-Volume-Profit (CVP)

2. Cost-Volume-Profit (CVP) 40 points a. Assignment Question on Cost Volume Profit (CVP) MMC Nutri Company is a small family fast food restaurant that opened in 2015, serving tropical cuisine to its mainly Afro-American, Asian and African customers. Because of its hot ingredients, few others patronize the food. This business serves its popular dish Jollof rice, fish or meat stew, and rice flour porridge, as a meal for $9 a serving. Its variable cost per serving is $4.10 and...

QUESTION ONE: COST–VOLUME–PROFIT (CVP) ANALYSIS (a) Identify the SIX underlying assumptions of cost–volume–profit (CVP) analysis. (b)...

QUESTION ONE: COST–VOLUME–PROFIT (CVP) ANALYSIS (a) Identify the SIX underlying assumptions of cost–volume–profit (CVP) analysis. (b) Select ANY THREE assumptions given in (a) and discuss the difficulties that could arise in CVP analysis if these assumptions do not hold. QUESTION TWO: PUTTING ACCOUNTING DECISIONS IN CONTEXT (a) Describe TWO financial and TWO non-financial performance indicators which may be useful for users of the reports of a public benefit entity (e.g. a museum). (b) If you were a member of the...

Cost Behavior and Cost-Volume-Profit (CVP) Analysis are very important and useful concepts and tools used by...

Cost Behavior and Cost-Volume-Profit (CVP) Analysis are very important and useful concepts and tools used by management and other decision-makers. CVP analysis and one's understanding of cost behavior is helpful for business planning and controlling purposes. Due to the temporary downturn in the economy, sales revenues have decreased by 50% to 60% for many restaurants and eateries, retails stores and service-oriented businesses (e.g., hair salons ) thus affecting profitability and the ability to continue business operations. In order to survive the...

Provide examples of how cost–volume–profit analysis can be used for decision-making.

How do companies use CVP analysis information in decision making?

How would a business use cost-volume-profit (CVP) analysis? What are the assumptions of CVP analysis? Are...

How would a business use cost-volume-profit (CVP) analysis? What are the assumptions of CVP analysis? Are these assumptions valid? Can CVP analysis be used for multiple products?

Do you think the focus of a Cost Volume Profit (CVP) analysis is the unit cost...

Do you think the focus of a Cost Volume Profit (CVP) analysis is the unit cost of an item, the overall profitability of a new product, the profitability of a department manufacturing a new product, or some combination of all of these items? Explain your reasoning.

(a) How can Cost Volume Profit [CVP] techniques be used in supporting a company’s sustainability efforts?...

(a) How can Cost Volume Profit [CVP] techniques be used in supporting a company’s sustainability efforts? How might CVP be a barrier to sustainability efforts? (b) Why could a manager be justified in ignoring fixed costs when making a decision about a special order? When would fixed costs be relevant when making a decision about a special order?

Examine the elements of the cost-volume-profit (CVP) income statement and provide your opinion on the benefits...

Examine the elements of the cost-volume-profit (CVP) income statement and provide your opinion on the benefits of its use for decision making by the management of the company researched over traditional income statements under generally accepted accounting principles (GAAP).

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