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Feliz [49]
4 years ago
11

Explain single product cost-volume-profit (CVP) and break-even analysis. Provide a hypothetical example of CVP and breakeven ana

lysis. Provide in-text citations and explain your example in detail.
Business
1 answer:
pickupchik [31]4 years ago
7 0
Cost volume profit shows the relation between sales volume, price and costs, these three factors affects the profit of company. Such CVP analysis used in decision making for the company. Profit volume(PV) ratio is one of the ratio from CVP analysis. PV ratio is the ratio between Contribution and sales of the company.

For example:- Let's say Sales of the company is $10,000,000 and variable cost = $3,585,000

Contribution will be Sales-variable cost = $10,000,000 - $3,585,000 = $6,415,000

PV ratio = Contribution/sales *100 = $6,415,000 / $10,000,000 * 100 = 64.15%

Here in this example, PV ratio of 64.15% is the contribution before fixed cost that a company has earned from its sales.

Break Even Analysis:-

Break even analysis show the situation where the company is at zero profit situation, means no profit no loss situation. Break even analysis or the break even point is the point that given the level at which company earns no profit or incurred no loss. Break even point is one of the analysis that comes under Break even analysis. Break even analysis is the ratio between fixed cost and PV ratio (%) of the company.

For example;- Let's say in the above example Fixed cost of the company is $1,300,000 and PV as calculated in the above example is 64.15% , Break even point will be Fixed cost / PV ratio = $1,300,000 / 64.15% = $2,026.500. This is the point where company is at zero profit/loss situation means company incurred no loss and earned zero profit.
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After all of the account balances have been extended to the Income statement columns of the worksheet, the totals of the debit a
Masja [62]

Answer:

a. $7, 283 net income

Explanation:

The debits in an income statement represents the expenses while the credit entries represent the income. As such, given;

Total debits = $20,303

Total credits = $27,586

Net income/(loss) = $27,586 - $20,303

                             = $7,283

Since the total credit (income) is more than the total debit, the net of the two balances result in a net income.

The answer is a. $7, 283 net income.

8 0
3 years ago
Which of the following statements is true?
Rama09 [41]

Answer:

The correct answer is b) The production possibilities frontier is usually bowed outward

Explanation: The production possibilities frontier can bow outward (usually), inward (sometimes), or be a straight line (rare).

When it bows outward, it is because the production capacity of a firm or a national economy is growing, and when it bows inward, it is because the economy is shrinking.

8 0
4 years ago
The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processin
Morgarella [4.7K]

Answer:

Cost of Ending WORK in Process $ 139496

Explanation:

Richmond Corporation

Weighted-Average Method

Ending work in process inventory  21,200 units

<em>First we find the equivalent units in the ending work in process inventory.</em>

Materials = 100% complete = 21200 units

Conversion= 60 % complete = 60% of 21200= 12720 units

<em>Then we multiply the equivalent units of the work in process inventory with the equivalent cost per unit and then add the materials and conversion costs to get the total cost of the ending work in process inventory.</em>

Materials = 21200 * $3.55 = $75260

Conversion = 12720 * $5.05=  $ 64,236

Cost of Ending WORK in Process= $75260+$ 64,236= $ 139496

6 0
3 years ago
Fraud opportunity involves:____.
True [87]

Fraud opportunity involves all of these.

The definition of cheating is anything you say or do in bad faith to deceive someone. An example of fraud is when a person who promises to make a lot of money by investing takes the money and disappears.

Fraud and financial crime are forms of theft that occur when a person or entity steals money or property or uses it illegally for profit.

fraud mainly he has two types. There is criminal fraud when theft is involved, and civil fraud when fraud or willful misrepresentation is involved.

Learn more about fraud here:brainly.com/question/1063454
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4 0
2 years ago
Ray was chosen by his boss to lead a team of coworkers during a companywide project. Ray spent a lot of time getting to know eac
shtirl [24]

Answer: Building community is the characteristic of servant leadership that best describes Ray's methods

Explanation:

Building community is sought out by leaders since they see the evolution of  administration as diffident away from creating assemblage within workers. Having a sense of community in a administration is important because it evolves positive relation that makes completing project effortless.

6 0
3 years ago
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