Covid 19 has caused an economic meltdown globally. Suppose, you are an owner of a popular...

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Covid 19 has caused an economic meltdown globally. Suppose, you are an owner of a popular export oriented shoe brand in Bangladesh. How your business would have impacted due to corona outbreak? Answer the question based on your knowledge of product cost, period cost and CVP analysis ONLY. * Covid 19 has caused an economic meltdown globally. Suppose, you are an owner of a popular export oriented shoe brand in Bangladesh. How your business would have impacted due to corona outbreak? Answer the question based on your knowledge of product cost, period cost and CVP analysis ONLY. *

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Due to the outbreak of the COVID19 the sales volume of the firm are reduced because the export orders have taken a hit When the sales are lower the contribution margin of the firm will reduce Contribution margin is the difference between Sales and variable cost Variable cost is the cost which varies with output Contribution margin helps in recovery of fixed cost of the firm The fixed costs are constant and they do not change irrespective of level of sales Hence the company has to incur losses on account on lower export order ... View the full answer