Question

Assume that you are preparing a seminar on cost-volume-profit analysis for non-accountants. Several potential attendees have approached you and have asked why they should be interested in learning about your topic. The individuals include the following:

• A factory worker who serves as her company’s labor union representative in charge of contract negotiations.
• A purchasing agent in charge of ordering raw materials for a large manufacturing company.
• A vice president of sales for a large automobile company.
• A director of research and development for a pharmaceutical company.

What unique reasons could you give each of these individuals to motivate them to come to your seminar?

Answer 1

Answer:

Every individual is expanded in finding out about cost volume profit analysis since lean about the following unique answers:

1)Factory labor:

• What amount is he contributing towards ?
• Since work cost is a piece of variable expense and unit contribution is the contrast between unit selling

2)Purchasing agent:

• How the unit cost of crude material bought influence unit contribution ?

3)Vice president of sales:

• what will happen our profit on the off chance that we expand capacity?

4)A chief of innovative work or research and development for pharmaceutical organization .

• The Break Even point of a new product launch