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 out of revenue earned by selling smart phones. The formula for contribution margin is as follows:
Contribution margin = Sales - Variable cost.
Similarly contribution margin ratio = Contribution/sales
Weighted Average Contribution Margin:
Weighted Average Contribution Margin is calculated for two products with the help of following formula:
To calculate:
The weighted Average contribution margin per unit for each case
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Chapter 6 Solutions
MANAGERIAL ACCOUNTING W/CONNECT
- Please include the step by step solutionarrow_forwardWhich of the following is an option for consolidating data into one table or worksheet? Use the VLOOKUP function in a formula Use the CONSOLIDATE function in a formula Use the MERGE function in a formula Use the COMBINE function in a formulaarrow_forwardAnswer these MCQ's below.arrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College