I have several discussion questions. Eadch one needs to be 200 words and have a reference.
The format needs to be the following:
Question
Answer
Reference
QuestionAnswerReference
Etc….
NOTE: Each responds/answer must be 200 words and have a reference.
Please present the CVP formula for computing the target income before income taxes and the formula for computing the effects of a change in volume on after-tax income. Please provide at least one example.
Contribution margin is the excess of sales over fixed costs. Do you agree? Explain. Please describe three ways of lowering a break-even point.
Fixed costs decline as volume increases. Do you agree? Please Explain. Explain two assumptions that underlie CVP analysis.
Please define the term sales mix, and give an example to support your definition.
Please explain the difference between contribution approach and absorption approach.
What is the variable cost ratio? The contribution margin ratio? How are the two ratios related? Please describe the difference between the units sold approach to CVP analysis and the sales-revenue approach.
Please define the term margin of safety. A company has a contribution margin of 40% and fixed costs of $300,000. If the company generates revenues of $900,000 it has a margin of safety of $60,000. True or False? Please explain.