Determine the company operating income

Assignment Help Accounting Basics
Reference no: EM131601260

Problem - The Cost-Volume-Profit (CVP) analysis is used to determine the company's operating income, and the net income and how they might be affected by the changing costs.

The CVP makes various assumptions in its application:

1. The behavior of both the costs and revenues is linear.

2. You can classify, relevantly, cost as fixed or variable.

3. Cost is only affected by changes in activities.

Decision makers use the CVP, however, because it determines the contribution of activities and the margin between the sales revenue and the variable expenses. Fixed costs are deducted from this margin to get the profit. This proves helpful in making decisions regarding investment and expansion of operations.

Please define break-even analysis? Explain.

Reference no: EM131601260

Questions Cloud

Identify the ethical issue and the stakeholders : Identify the ethical issue and the stakeholders. Stakeholders may include shareholders, creditors, management, employees, and the community
Explain the lowest end of the housing spectrum : The neighborhood you are patrolling is characterized by low-income housing, cheap apartments, tiny houses on the lowest end of the housing spectrum
Define and state the formula for contribution margin : Question - Define and state the formula for contribution margin? Please explain in detail
Your career advancement in management : How will these competencies and knowledge support your career advancement in management?
Determine the company operating income : The Cost-Volume-Profit (CVP) analysis is used to determine the company's operating income, and the net income
Understanding of the sensitivity of financial data : You have been asked to develop an access control policy for LMJ-Star Services (LSS) based on your understanding of the sensitivity of financial data and health.
Discuss one of the clips of beethovens eroica : Discuss one of the clips of Beethoven's "Eroica", "Fifth Symphony" or Louis B Armstrong's clip.
Discuss one technology adopted by police : Discuss one technology adopted by police to enhance patrol strategies? Discuss how this technology works, is being used, and the future of this technology
What is your plan for introducing the new product or service : Create a SWOT analysis for a new product or service that you are going to introduce. Use information from the text to identify strategies for introducing.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Assume that output can be produced only using processes a

assume that output can be produced only using processes a and b. process a requires inputs l and k to be combined in

  What is the amount of cash receipts from customers

Columbia Sportswear Company had accounts receivable of $299,585,000 at January 1, 2009, and $226,548,000 at December 31, 2009.

  On october 1 2015 hsb decides to retire the bonds one year

on october 1 2015 hsb decides to retire the bonds one year earily. they pay 98. all interest has been accrued and paid

  Sales tax and record journal entry

On May 10, 2007, Wiley, Inc remitted $91,450 to the state tax division for April 2007 sales. Calculate the amount of Wiley's April 2007 sales subject to sales tax, and, record the journal entry that would be made when the tax is paid:

  Carmack company has credit sales of 26 million for year

carmack company has credit sales of 2.6 million for year 2011. on december 31 2011 the companys allowance for doubtful

  You are auditing the accounts receivable balance of a cable

you are auditing the accounts receivable balance of a cable television provider. individual accounts receivables tend

  Wisconsin warning co plans to finance its operations by

wisconsin warning co. plans to finance its operations by issuing 5000000 of 5 year 12 bonds with interest payable

  Below is the comparative balance sheet

The short-term investments are considered available-for-sale, and no unrealized gains or losses have occurred on these securities.

  Compute prior service cost amortization

Mancuso Corporation amended its pension plan on January 1, 2014, and granted $160,000 of prior service costs to its employees.

  You know that both internal and external users have not

you know that both internal and external users have not only the short-term success but also the long-term success of

  Reducing estimated sales tax revenues

He legislature revised the budget by reducing estimated sales tax revenues by $ 125,000 and reducing the appropriation for General government all other by $ 75,000.

  Inventory transactions at both cost and retail

1.On January 1, 2013, HGC Camera Store adopted the dollar value LIFO retail inventory method.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd