Al-Quwaish" exploited the energy of machinery and equipment at 85% nd the net monthly sales value of F000 dinars. The following amounts vere disbursed in operational perations, 2500 dinars wages of rimary materials, insurance prices 00 dinars, loans 250 dinars, dministrative expenses 200 dinars, -00 dinars, marketing expenses 130 linars, industrial expenses 130 linars Calculate Miley . Fixed costs : - changing costs :. Sales .- The value of the tie point
Cost-Volume-Profit Analysis
Cost Volume Profit (CVP) analysis is a cost accounting method that analyses the effect of fluctuating cost and volume on the operating profit. Also known as break-even analysis, CVP determines the break-even point for varying volumes of sales and cost structures. This information helps the managers make economic decisions on a short-term basis. CVP analysis is based on many assumptions. Sales price, variable costs, and fixed costs per unit are assumed to be constant. The analysis also assumes that all units produced are sold and costs get impacted due to changes in activities. All costs incurred by the company like administrative, manufacturing, and selling costs are identified as either fixed or variable.
Marginal Costing
Marginal cost is defined as the change in the total cost which takes place when one additional unit of a product is manufactured. The marginal cost is influenced only by the variations which generally occur in the variable costs because the fixed costs remain the same irrespective of the output produced. The concept of marginal cost is used for product pricing when the customers want the lowest possible price for a certain number of orders. There is no accounting entry for marginal cost and it is only used by the management for taking effective decisions.
![In one of the tanker bearings,
"Al-Quwaish" exploited the energy
of machinery and equipment at 85%
and the net monthly sales value of
8000 dinars. The following amounts
were disbursed in operational
operations, 2500 dinars wages of
primary materials, insurance prices
300 dinars, loans 250 dinars,
administrative expenses 200 dinars,
500 dinars, marketing expenses 130
dinars, industrial expenses 130
dinars Calculate Miley
1. Fixed costs
2 - changing costs
3. Sales
4- The value of the tie point](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fab06008a-f2ef-45b3-b82c-673ff72238c2%2F6fbb6bd8-0f8a-4190-8c2e-c795119cdfa1%2Ff70hw1h_processed.jpeg&w=3840&q=75)
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