BREAK EVEN SALES IN DOLLARS AND CONTRIBUTION MARGIN RATIO Please provide how to find the Break Even sales in Dollars and how to find the Contribution Margion Ratio on the information below. Price per cake $14.71 Variable Costs per cake Ingredients $2.25 Direct Labor 1.02 Overhead (box, etc) .25 Fixed cost per month $4,476
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
BREAK EVEN SALES IN DOLLARS AND CONTRIBUTION MARGIN RATIO
Please provide how to find the Break Even sales in Dollars and how to find the Contribution Margion Ratio on the information below.
Price per cake $14.71
Variable Costs per cake
Ingredients $2.25
Direct Labor 1.02
Fixed cost per month $4,476
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