美国版的成本会计Chapter10.pptVIP

* Degree of Operating Leverage (DOL) = Contribution Margin / Net Income * Example: Wilsey Air Charter Services had revenue of $1,654,000 last year, with total variable costs of $1,042,020 and fixed costs of $503,200. Required: 1. What is the contribution margin ratio for Wilsey based on last years data? What is the break-even point in sales revenue? 2. What was the margin of safety for Wilsey last year? Wilsey is considering starting a multimedia advertising campaign that is supposed to increase sales by $120,000 per year. The campaign will cost $50,000. Is the advertising campaign a good idea? Explain. * End of Chapter 10 And that means the homework for this Chapter will be collected next meeting. * Chapter (10) Break-Even Point and Cost-Volume-Profit Analysis * Cost –Volume - Profit Analysis Breakeven point is the point at which: Total Revenues = Total Costs (Variable + Fixed) Contribution Margin = Fixed Costs Net Income = Zero * Activity Level (units) Sales Revenues ($10 Per Unit) Fixed (F) Costs ($8,000 Rent) Variable Costs ($8 Per Unit) Total Costs (F + V) 0 $0 $8,000 $0 $8,000 1,000 $10,000 $8,000 $ 8,000 $16,000 2,000 $20,000 $8,000 $16,000 $24,000 3,000 $30,000 $8,000 $24,000 $32,000 4,000 $40,000 $8,000 $32,000 $40,000 5,000 $50,000 $8,000 $40,000 $48,000 6,000 $60,000 $8,000 $48,000 $56,000 7,000 $70,000 $8,000 $56,000 $64,000 8,000 $80,000 $8,000 $64,000 $72,000 * Sales revenues to breakeven Units of sales to breakeven * Sales revenues to breakeven Units of sales to breakeven * * Q = F / (P – V) Q ( P - V) = F ( Divided both sides by (P – V) QP – QV = F (Factor out Q) QP = QV + F (Subtract QV from both sides) Total Revenues = Total Costs ( Variable + Fixed) At breakeven point: Q = Quantity to produced and sold F = Total fixed cost V = Variable cost per unit P = Selling Price per unit Let: * Breakeven Analysis Using Formulas * If Renzen Company sells 6,300 dictionaries, what is the operating income