Option B (Total expense, total fixed expense) Cost volume profit (CVP) graph is a cost management tool which represents the relation between the units produced and the cost of those produced units taking into account the revenues, total expenses and fixed costs. It helps the managers easily understand the Break-even point and the company's Margin of Safety. |
To prepare a CVP graph, lines must be drawn representing total revenue, O total expense, and...
QUESTION 7 Which of the following statements is correct with regard to a CVP (Cost, Volume, Profit) graph? 1.A CVP graph shows the maximum possible profit. 2.A CVP graph shows the break-even point as the intersection of the total sales revenue line and the total expense line 3.A CVP graph assumes that total expense varies in direct proportion to unit sales. 4.A CVP graph shows the operating leverage as the gap between total sales revenue and total expense at the...
need this question answer. 1. Prepare a CVP graph showing Total Cost line, Total Fixed Cost line, Total Revenue line, Break-even point, Profit area, and Loss area. 2. Describe the differences between a job-costing system and a process-costing system. Provide 2 examples of each system.
SO Step 2. Plot the total expense on the graph Part 1 of 3 0 5 10 15 20 25 30 35 40 45 535 Value in Car Cart Sold 30 1:51 / 1.51 1x CC 1 Knowledge Check 01 What is represented on the X axis of a cost-volume-profit (CVP) graph? points Skipped eBook O Sales revenue O Fixed cost O Unit volume O Variable cost Print References Knowledge Check 02 What is usually plotted as a horizontal line...
SO Step 2. Plot the total expense on the graph Part 1 of 3 0 5 10 15 20 25 30 35 40 45 535 Value in Car Cart Sold 30 1:51 / 1.51 1x CC 1 Knowledge Check 01 What is represented on the X axis of a cost-volume-profit (CVP) graph? points Skipped eBook O Sales revenue O Fixed cost O Unit volume O Variable cost Print References Knowledge Check 02 What is usually plotted as a horizontal line...
Exercise 2-2 (Static) Prepare a Cost-Volume-Profit (CVP) Graph [LO2-2] [The following information applies to the questions displayed below.] Karlik Enterprises distributes a single product whose selling price is $24 per unit and whose variable expense is $18 per unit. The company’s monthly fixed expense is $24,000. Exercise 2-2 (Static) Part 1 Required: 1. Prepare a cost-volume-profit graph for the company up to a sales level of 8,000 units. (Use the line tool to draw three lines (Total Sales Revenue, Fixed...
Exercise 5-2 Prepare a Cost-Volume-Profit (CVP) Graph (LO5-2] Karlik Enterprises distributes a single product whose selling price is $17.10 and whose variable expense is $12.00 per unit. The company's monthly fixed expense is $17,340. Required: 2. Calculate the company's break-even point in unit sales. Unit sales to break even
Exercise 6-2 Prepare a Cost-Volume-Profit (CVP) Graph (LO6-2] Karlik Enterprises distributes a single product whose selling price is $28 per unit and whose variable expense is $18 per unit. The company's monthly fixed expense is $24,000. Required: 2 Calculate the company's break-even point in unit sales. Unit sales to break even + unts
EXERCISE 5-2 Prepare a Cost-Volume-Profit (CVP) Graph L05-2 Karlik Enterprises distributes a single product whose selling price is $24 per unit and whose vari- able expense is $18 per unit. The company's monthly fixed expense is $24,000. Required: Prepare a cost-volume-profit graph for the company up to a sales level of 8,000 units. Estimate the company's break-even point in unit sales using your cost-volume-profit graph.
Cost-volume-profit (CVP) analysis is a powerful tool for planning and decision making. Thus, CVP analysis emphasized the interrelationships of costs, quantity sold, and price. This analysis is defined as assessment of total revenues, total costs and operating income in response to changes in the volume of sales, the selling price, variable cost or fixed costs of production. The CVP analysis can be a valuable tool in identifying the extent and magnitude of the economic trouble a company is facing and...
P18-2A Prepare a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio and sales for target net income Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $1,800,000 Selling expenses - variable Direct materials 430,000 Selling expenses - fixed Direct labor 360,000 Administrative...