FCSE 3120 Lecture Notes - Lecture 31: Earnings Before Interest And Taxes, Fixed Cost, The Variable
20 Mar 2019
School
Department
Course
Professor
Document Summary
Sales, variable expenses, and contribution margin can also be expressed on a per unit basis. If racing sells an additional bicycle, additional cm will be generated to cover fixed expenses and profit. Each month, rbc must generate at least ,000 in total contribution margin to break-even (which is the level of sales at which profit is zero). If rbc sells 400 units in a month, it will be operating at the break-even point. If rbc sells one more bike (401 bikes), net operating income will increase by . The relationships among revenue, cost, profit, and volume can be expressed graphically by preparing a. Racing bicycle developed contribution margin income statements at 0, 200, 400, and 600 units sold. We will use this information to prepare the cvp graph. Change in fixed cost, sales price, and volume. Change in variable cost, fixed cost, and sales volume.
