英文讲课课件Group­2­CVPRELATIONSHIPS­PRESENTATION.pptx

COST-VOLUME-PROFIT RELATIONSHIPS;The Basic of CVP Analysis;What is CVP?;Elements of CVP analysis;What are the components of CVP analysis?;Formula of CVP;Why is a CVP analysis important?;What is CVP analysis used for?;Breakeven Point (BEP);TARGET PROFIT ANALYSIS;MARGIN OF SAFETY;MARGIN OF SAFETY;EXAMPLE ;REQUIRED:;1.BEP=TFC/(P-UVC) =P1,200,000/(P400-P240) =7500*1,200,000 =800,000(FIXED FACTORY OVER HEAD)+400,000(FIXED SELLING AND ADMINISTRATIVE EXPENSE.*240 =80(DM)+125(DL)+15(VOH)+20(COMM.EXP. 5% OF 400(PRICE)SALES(7500units@ P400) P3,000,000LESS:VARIABLE EXPENSES P1,800,000 (7500@P240)CONTRIBUTION MARGIN P1,200,000LESS:FIXED EXPENSES P1,200,000 (800,000+400,000)OPERATING INCOME P0; 2.# UNITS= FIXED COST+ TARGET PROFIT CONTRIBUTION MARGIN =(P1,200,000+P240,000) (400-240) =P1,440,000/P160 =9,000 *must sold 9000 units of snowboard inorder to achieve the target income . ;3.MOS=ACTUAL/EXPECTED-BEP =10,000-7500 =2,500 UNITS 4.BEPSALES=7500*P400 = P3,000,000 MOS SALES=(10,000*400)-3,000,000 =P1,000,000 ;5.MOS %= 4,000,000-3,000,000 4,000,000 = 1,000,000 4,000,000 =.25*100 =25% NOTE: 100 IS CONSTANT ;OPERATING LEVERAGE;OPERATING LEVERAGE;degree of operating leverage (DOL);John’s Software is a leading software business, which mostly incurs fixed costs for upfront development and marketing. John’s fixed costs are $780,000, which goes towards developers’ salaries and the cost per unit is $0.08. The company sells 300,000 units for $25 each. Given that the software industry is involved in the development, marketing and sales, it includes a range of applications, from network systems