Accounting Business Reporting for Decision Making

CHAPTER 10 Cost–volume–profit analysis 427 For example, if ATC sets a desired profit level (prior to any income tax consideratio ...

428 Accounting: Business Reporting for Decision Making (continued) profit or the desired profit. In the previous example, ATC ne ...

CHAPTER 10 Cost–volume–profit analysis 429 Break-even analysis for multiple products In our previous example, ATC had only one p ...

430 Accounting: Business Reporting for Decision Making (continued) bSum of the contribution margin for each product multiplied b ...

CHAPTER 10 Cost–volume–profit analysis 431 10.3 Contribution margin ratio LEARNING OBJECTIVE 10.3 Apply the contribution margin ...

432 Accounting: Business Reporting for Decision Making (continued) The break-even level of sales will be equal to: $9 000 000 = ...

CHAPTER 10 Cost–volume–profit analysis 433 An interesting issue relating to break-even calculations is: what do you do if the br ...

434 Accounting: Business Reporting for Decision Making (continued) Lunch provided @ $30 per player Contract lunch @ $1200 per to ...

CHAPTER 10 Cost–volume–profit analysis 435 VALUE TO BUSINESS • CVP analysis is an important part of the planning process and s ...

436 Accounting: Business Reporting for Decision Making Coconut Plantations has only 270 000 machine hours available for producti ...

CHAPTER 10 Cost–volume–profit analysis 437 decision-making process and together with relevant qualitative factors forms the info ...

438 Accounting: Business Reporting for Decision Making (continued) is made available to pursue the new business opportunity with ...

CHAPTER 10 Cost–volume–profit analysis 439 ILLUSTRATIVE EXAMPLE 10.5 Make or buy decision — outsourcing a component part Palamar ...

440 Accounting: Business Reporting for Decision Making (continued) Cost to outsource Purchase price ($1.40 × 100 000 units) Unav ...

CHAPTER 10 Cost–volume–profit analysis 441 However, what would be the effect if the special order required 20 000 units? To acce ...

442 Accounting: Business Reporting for Decision Making (continued) Increasing production will increase expenditure only on varia ...

CHAPTER 10 Cost–volume–profit analysis 443 ILLUSTRATIVE EXAMPLE 10.7 Special order with no idle capacity Specialised Fitters has ...

444 Accounting: Business Reporting for Decision Making Summary of learning objectives 10.1 Define fixed, variable and mixed cost ...

CHAPTER 10 Cost–volume–profit analysis 445 10.9 Analyse an outsourcing decision. Whether it is for cost savings or other factors ...

446 Accounting: Business Reporting for Decision Making APPLY YOUR KNOWLEDGE 22 marks Juices R Us sells bottles of freshly squeez ...