1.
Concept introduction:
Cost volume profit (CVP) analysis:
The CVP analysis analyses use the relation between cost, volume and profit to calculate the effect of change in one variable on others. The contribution margin represents the amount of margin that is available from sales after incurring variable costs out.
To calculate: the contribution margin ratio.
2.
Concept introduction:
Cost volume profit (CVP) analysis:
The CVP analysis analyses use the relation between cost, volume and profit to calculate the effect of change in one variable on others. The contribution margin represents the amount of margin that is available from sales after incurring variable costs out.
To calculate: the estimated change in net operating income.
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