5 Questions
Calculate the break-even point for a particular product
break-even sales = \frac{fixed \ costs},{contribution \ margin}
Calculate the sales volume required to achieve the target profit
target \ sales = \frac{fixed \ costs + target \ profit},{contribution \ margin}
Determine the extent to which sales exceed break-even sales
margin \ of \ safety = actual \ sales - break-even \ sales
Conduct a ‘what if’ analysis to determine the effect of changes in costs and sales volume in net profit
net \ profit = (sales \ volume \times contribution \ margin) - fixed \ costs
The Contribution Income Statement Used under CVP analysis
contribution \ margin = sales \ price - variable \ cost
Test your understanding of Cost-Volume-Profit Analysis with this quiz. Calculate break-even points, target profits, and conduct 'what if' scenarios to determine the impact of changes in costs and sales volume on net profit. Sharpen your skills in financial analysis and decision-making.
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