Question: can you explain this all in detail please Chapter 6- CVP Cm Unit= Sales Price - VC OR TOTAL CM = Sales Revenue - Total

can you explain this all in detail please

Chapter 6- CVP Cm Unit= Sales Price - VC OR TOTAL CM = Sales Revenue - Total VC CM Ratio= CM Per unit / Sales Price OR Total CM / Total Revenue 1- Income statement method CM Income Statement Traditional Ol= SP*units - VC*units - FC Revenue Revenue -VC -CGS 2- UNITS = (FC+01) / CM per unit =CM =GM -FC -Op Exp 3- $ = (FC+OI) / CM Ratio =01 If we have a multi product company, first need to determine either the WACM per unit or the WACM Ratio WACM Per unit= (CM1*SM1)+(CM2*SM2) ..... WACM Ratio= (CMRatio1* SM1) + (CMRatio2*SM2)

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