Friday, March 4, 2016

ACC 201 WORKSHOP THREE DROPBOX 3.3 Cost-Volume-Profit Handout


ACC 201 WORKSHOP THREE DROPBOX 3.3 Cost-Volume-Profit Handout
Indiana Wesleyan University
1. What is the difference between the selling price per unit and all variable costs per unit?
2. In making short-term decisions regarding output, why are fixed costs irrelevant?
3. What is the numerator in the calculation to find the break-even volume?
4. To which term in the break-even volume calculation is the desired profit added?
5. What would happen to the break-even point if the variable cost per unit fell?

6. By how much would projected profits increase if fixed costs fell by $10,000?

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