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Change in Fixed Cost
In graph yx shows the existing profit curve for a company along with a fixed cost OY break=-even point B, margin of safety M; profit SX whereas sales volume is OS. A change in fixed cost does not affect the contribution to sales ratio that is only influenced via variable cost and selling price per unit.
Line y1, x1 displays the new profit curve while fixed costs are reduced to OY1. The following must be noted
how to determine reasonable, allowable, allocable, variable, fixed cost of new company
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why is determining the cost to manufacture a product quite a different activity from determining how to control such cost?
Relationship among variances We cannot over emphasize the central aim of variance analysis as outlined in the above paragraphs: that is to assign responsibility for a particu
Imperial Sandwich Plc is to be established shortly. The founders are considering their options with regard to capital structure. A total of £5 m will be required to establish the b
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Questions 8-10 rely on the following data. FrontGrade Systems allocates manufacturing over- head based on machine hours. Each connector should require 11 machine hours. According t
Consider the following information, prepared based on a capacity of 40,000 units: Category Cost per Unit Variable manufacturing costs
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