Concept Introduction:
Cost Volume Profit (CVP) Analysis:
The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.
Contribution margin means the margin that is left with the company after recovering variable cost ut of revenue earned by selling smart phones. The formula for contribution margin = Sales - Variable cost.
Similarly contribution margin ratio = Contribution/sales
Requirement-1:
To Calculate:
The Contribution Margin ratio for each model
Concept Introduction:
Cost Volume Profit (CVP) Analysis:
The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.
Contribution margin means the margin that is left with the company after recovering variable cost ut of revenue earned by selling smart phones. The formula for contribution margin = Sales - Variable cost.
Similarly contribution margin ratio = Contribution/sales
Requirement-2:
To Indicate:
The Company which is better in generation contribution margin
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Chapter 21 Solutions
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