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Management has an objective to maximize the wealth of shareholder. Therefore they willing to earn profit but want to know the sales level where no profit or loss will be arise. Required: Explain Cost Volume profit analysis. You answer covers the following details. (a) Breakeven sales and how to calculate it. (b) How to calculate sales if management wants to earn profit. (c) Margin of safety and how to calculate it. (Marks 03) Management has an objective to maximize the wealth of shareholder. Therefore they willing to earn profit but want to know the sales level where no profit or loss will be arise. Required: Explain Cost Volume profit analysis. You answer covers the following details. (a) Breakeven sales and how to calculate it. (b) How to calculate sales if management wants to earn profit. (c) Margin of safety and how to calculate it. (Marks 03)
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CostVolumeProfit CVP analysis is a managerial accounting technique that helps businesses understand the relationship between costs volume of productio... View the full answer
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