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April 18, 2014

Homework Help: accounting

Posted by Anonymous on Sunday, November 20, 2011 at 12:57pm.

Components of Cost-Volume-Profit Analysis

1.Explain the components of cost-volume-profit analysis.
2.What does each of the components mean?
3.What happens to contribution margin per unit when unit selling prices increase? Illustrate your explanation with an example from a fictitious company of how an increase in unit selling prices might affect contribution margin.
4.When fixed costs decrease, what does this do for sales? Illustrate your explanation with an example from a fictitious company.
5.Define contribution ratios.
6.What happens to contribution ratios as one of the components changes

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