2010本—量—利关系

CVP Graph
4 5 0 0 ,0 0 4 0 0 0 ,0 0 3 5 0 0 ,0 0 3 0 0 0 ,0 0 2 5 0 0 ,0 0 2 0 0 0 ,0 0 1 5 0 0 ,0 0 1 0 0 0 ,0 0 5 0 0 ,0 0 100 200 300 400 500 600 700 800
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After covering fixed costs, any remaining CM contributes to profit.
The Contribution Approach
For each additional unit Wind sells, $200 more in contribution margin will help to cover fixed expenses and profit.
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500 Bikes $ 250,000 150,000 100,000 80,000 $ 20,000
A $50,000 increase in sales revenue results in a $20,000 increase in CM. ($50,000 × 40% = $20,000)
Quick Check
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Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the average variable expense per cup is $0.36. The average fixed expense per month is $1,300. 2,100 cups are sold each month on average. What is Unit contribution margin the CM Ratio for Coffee CM Ratio =Klatch? Unit selling price a. 1.319 ($1.49-$0.36) = b. 0.758 $1.49 c. 0.242 $1.13 = = 0.758 $1.49 d. 4.139
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The Basics of Cost-VolumeProfit Analysis
WIND BICYCLE CO. Contribution Income Statement For the Month of June Total Per Unit Sales (500 bikes) $ 250,000 $ 500 Less: variable expenses 150,000 300 Contribution margin 100,000 $ 200 Less: fixed expenses 80,000 Profit BT $ 20,000
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MAA 703 Management Accounting
Lecture 2
Topic 3: Cost-Volume-Profit Relationships
COST VOLUME PROFIT (CVP) ANALYSIS
• Shows how alternate actions can affect profit. • Focuses on the relationship between cost, volume and profit. • It enables us to: (1) determine the break-even level of production, and (2) predict how changes in the level of production, selling price or costs will affect profit
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Perce 10 6 4
The Contribution Approach
Each month Wind must generate at least $80,000 in total CM to break even.
Total Sales (500 bikes) $ 250,000 Less: variable expenses 150,000 Contribution margin $ 100,000 Less: fixed expenses 80,000 Profit BT $ 20,000 Per Unit $ 500 300 $ 200
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The Contribution Approach
If Wind sells one more bike (401 bikes), net operating income will increase by $200.
WIND BICYCLE CO. Contribution Income Statement For the Month of June Total Per Unit Sales (401 bikes) $ 200,500 $ 500 Less: variable expenses 120,300 300 Contribution margin 80,200 $ 200 Less: fixed expenses 80,000 Profit BT $ 200
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500 Bikes $ 250,000 150,000 100,000 80,000 $ 20,000
A $50,000 increase in sales revenue
Contribution Margin Ratio
400 Bikes Sales $ 200,000 Less: variable expenses 120,000 Contribution margin 80,000 Less: fixed expenses 80,000 Profit BT $ -
Contribution Margin Ratio
400 Bikes Sales $ 200,000 Less: variable expenses 120,000 Contribution margin 80,000 Less: fixed expenses 80,000 Profit BT $ -
$200 = 40% $500
Contribution Margin Ratio
At Wind, each $1.00 increase in sales revenue results in a total contribution margin increase of 40¢.
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If sales increase by $50,000, what will be the increase in total contribution margin? E驾驶证能开什么车 /chexing/ce.html 驾驶60 40
The Contribution Approach
If Wind sells 400 units in a month, it will be operating at the break-even point.
WIND BICYCLE CO. Contribution Income Statement For the Month of June Total Per Unit Sales (400 bikes) $ 200,000 $ 500 Less: variable expenses 120,000 300 Contribution margin 80,000 $ 200 Less: fixed expenses 80,000 Profit BT $ 0
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CM goes to cover fixed expenses.
The Basics of Cost-VolumeProfit Analysis
WIND BICYCLE CO. Contribution Income Statement For the Month of June Total Per Unit Sales (500 bikes) $ 250,000 $ 500 Less: variable expenses 150,000 300 Contribution margin 100,000 $ 200 Less: fixed expenses 80,000 Profit BT $ 20,000
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Break-even point
Units
Contribution Margin Ratio
The contribution margin ratio is:
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D驾驶证能开什么车 /chexing/d.html 驾驶员之家 For Wind Bicycle Co. the ratio is:
WIND BICYCLE CO. Contribution Income Statement For the Month of June Total Per Unit Sales (500 bikes) $ 250,000 $ 500 Less: variable expenses 150,000 300 Contribution margin 100,000 $ 200 Less: fixed expenses 80,000 Profit BT $ 20,000
$ 80,000 $200,000
= 40%
Contribution Margin Ratio
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Or, in terms of units, the contribution margin ratio is:
Unit CM CM Ratio = Unit selling price
For Wind Bicycle Co. the ratio is:
Total Sales (500 bikes) $ 250,000 Less: variable expenses 150,000 Contribution margin $ 100,000 Less: fixed expenses 80,000 Profit BT $ 20,000 Per Unit $ 500 300 $ 200