会计专业英语Chapter 8.pptVIP

Profit-Volume Charts A slight variant of the break-even chart is the profit-volume (PV) chart. A typical PV chart is shown in Illustration 8-8. O Volume of Activity (units of output) LOSS (￡) The sloping line is profit (loss) plotted against activity. As activity increases, so does total contribution (sales revenue less variable costs). At zero activity there are no contributions, so there will be a loss equal in amount to the total fixed costs. Break-even point LOSS PROFIT Fixed costs Illustration 8-8. Profit-Volume Chart Marginal Analysis and Decision For many decisions that involve: