•Describe cost volume profit analysis and how management can use it in more than just financial analysis.
•Explain the main differences between operating income and net income overall for a business.
•Explain and provide the calculation for how to derive the following: contribution margin, contribution margin per unit, and contribution margin percentage.
•Describe what sensitivity analysis is and how it could be used by management to determine the proper course to take for decisions that need to be made for the firm.
•How might a company with multiple products derive its breakeven point? What are some of the challenges in determining this?

Answer rating: 100% (QA)

Cost Volume Profit CVP CVP Analysis CVP analysis is the analysis of three variable viz cost volume and profit Such analysis explores the relationship existing amongst costs revenue activity level and ... View the full answer