会计学ch22.ppt

Chapter 22 Cost-Volume-Profit Analysis Objective 1 Types of Costs Variable Costs Example Consider Grand Canyon Railway. Assume that breakfast costs Grand Canyon Railway $3 per person. If the railroad carries 2,000 passengers, it will spend $6,000 for breakfast services. Variable Costs Example Fixed Costs Example Mixed Costs Example A mixed cost is part variable and part fixed. Assume a department of a company has fixed costs of $50 per month ($600 per year). There are also variable costs of $3 per hour. Mixed Costs Example Relevant Range... …is a band of volume in which a specific relationship exists between cost and volume. Outside the relevant range, the cost either increases or decreases. A fixed cost is fixed only within a given relevant range and a given time span. Relevant Range Objective 2 Assumptions of CVP Analysis Expenses can be classified as either variable or fixed. CVP relationships are linear over a wide range of production and sales. Sales prices, unit variable cost, and total fixed expenses will not vary within the relevant range. Assumptions of CVP Analysis Volume is the only cost driver. The relevant range of volume is specified. Inventory levels will be unchanged. The sales mix remains unchanged during the period. Equation Approach Breakeven Point Example Assume that fixed expenses amount to $90,000. How many devices must be sold at the regular price of $100 to break even? ($100 × Units sold) – ($70 × Units sold) – $90,000 = 0 Units sold = $90,000 ÷ $30 = 3,000 Contribution Margin Contribution Margin Formula Contribution Margin Ratio Formula Two Approaches to Compute Profits Conventional Income Statement Contribution MarginIncome Statement Contribution Margin Example Luis and Tom manufacture a device that allows users to take a closer look at icebergs from a ship. The usual price for the device is $100. Variable costs are $70. They receive a proposal from a company in Newfoundland to sell 20,000 units at a price of $85. Contribution Margin Exa