Cost- volume- Profit Analysis
Learning Objectives
1.Explain the features of cost-volume-profit (CVP) analysis
2.Determine the breakeven point and output level needed to achieve a target operating income
3.Understand how income taxes affect CVP analysis
4.Explain how managers use CVP analysis to make decisions
5. Explain how sensitivity analysis helps managers cope with uncertainty
6.Use CVP analysis to plan variable and fixed costs
7.Apply CVP analysis to a company producing multiple products
8.apply CVP analysis in service and not-for-profit organizations
9.Distinguish contribution margin from gross margin