[ITEM]
13.02.2019

Managerial Accounting Hilton Platt Solutions Manual Chapter 7

90

Managerial Accounting Hilton 6e Chapter 4 Solution. Solutions Solution Manual chapter 13 Hilton Plat. Documents Similar To Hilton 9E Global Edition Solutions Manual Chapter03. Tele popup software cracks Hilton 9E Global Edition Solutions Manual Chapter17.

Break-even point: ‘Break-even point’ is the level of production activity where there is neither profit nor loss for the organization. It is the point at which where the revenues of the organization are equal to its expenses.

In other words, it is the point of activity at which the organization ‘breaks-even’. It must be noted that for identifying the ‘breakeven point’, importance is given to the behavior of the costs in terms of fixed and variable costs. There are three different approaches to calculate the break-even point. Contribution – Margin approach b. Equation Approach c.

Graphical Approach a. Contribution – Margin Approach: Contribution – Margin refers to the difference between the sales revenue and the variable costs i.e., In this context it must be remembered that the contribution is towards the recovery of the fixed expenses and focus is on ‘contribution per unit’. Equation Approach: The equation approach is used along with the Contribution Margin Approach, i.e., the variables used are similar to those in Contribution-Margin Approach, which are now presented in an Equation form. The equation is Where sales = Sales Volume × Selling Price in Units per Unit Variable Expenses = Sales Volume × Variable Expenses in Units per Unit Fixed = Fixed (as given) Therefore, Sales Selling price Sales Variable Fixed volume in × per (-) Volume in × Expense (-) Expenses = Profit units unit units per unit Contribution margin approach and the Equation Approach are two alternative and equivalent approaches to find out the break-even point. * Given the sales price per unit, variable expense per unit the fixed expenses and the profit being zero at Break-even-point. Graphical Approach: This is an extension to the contribution-margin Approach and Equation Approach. In both these approaches we can find out the break-even point, which provides important information as a basis for managerial decision – making just as a starting point.

Identifying the break-even-point is not an end in itself. Through it is an ‘important starting point, it does not reflect the changed in the profit in accordance with the changes in activity or output. It is in order to establish a relationship between the profit and the volume of activity the ‘Graphical Approach’ is adopted. The graph developed under this approach is commonly known as ‘Cost-Volume-Profit’ (CVP) graph. Steps to develop the CVP graph: Step 1: Draw two axes of the graph from the origin (o), i.e., one horizontal axis (0-x) and the other vertical axis (0-y).

Codebreaker 10 1-isopropyl-3-methylcyclohexane. If you think codebreaker 10.1 iso file is your intellectual property and shouldn't be listed, please fill in DMCA complain and we remove file immediately. Also if visitors will get caught uploading multiple copyrighted files, their IP will be permanently banned from using our service.

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13.02.2019

Managerial Accounting Hilton Platt Solutions Manual Chapter 7

12

Managerial Accounting Hilton 6e Chapter 4 Solution. Solutions Solution Manual chapter 13 Hilton Plat. Documents Similar To Hilton 9E Global Edition Solutions Manual Chapter03. Tele popup software cracks Hilton 9E Global Edition Solutions Manual Chapter17.

Break-even point: ‘Break-even point’ is the level of production activity where there is neither profit nor loss for the organization. It is the point at which where the revenues of the organization are equal to its expenses.

In other words, it is the point of activity at which the organization ‘breaks-even’. It must be noted that for identifying the ‘breakeven point’, importance is given to the behavior of the costs in terms of fixed and variable costs. There are three different approaches to calculate the break-even point. Contribution – Margin approach b. Equation Approach c.

Graphical Approach a. Contribution – Margin Approach: Contribution – Margin refers to the difference between the sales revenue and the variable costs i.e., In this context it must be remembered that the contribution is towards the recovery of the fixed expenses and focus is on ‘contribution per unit’. Equation Approach: The equation approach is used along with the Contribution Margin Approach, i.e., the variables used are similar to those in Contribution-Margin Approach, which are now presented in an Equation form. The equation is Where sales = Sales Volume × Selling Price in Units per Unit Variable Expenses = Sales Volume × Variable Expenses in Units per Unit Fixed = Fixed (as given) Therefore, Sales Selling price Sales Variable Fixed volume in × per (-) Volume in × Expense (-) Expenses = Profit units unit units per unit Contribution margin approach and the Equation Approach are two alternative and equivalent approaches to find out the break-even point. * Given the sales price per unit, variable expense per unit the fixed expenses and the profit being zero at Break-even-point. Graphical Approach: This is an extension to the contribution-margin Approach and Equation Approach. In both these approaches we can find out the break-even point, which provides important information as a basis for managerial decision – making just as a starting point.

Identifying the break-even-point is not an end in itself. Through it is an ‘important starting point, it does not reflect the changed in the profit in accordance with the changes in activity or output. It is in order to establish a relationship between the profit and the volume of activity the ‘Graphical Approach’ is adopted. The graph developed under this approach is commonly known as ‘Cost-Volume-Profit’ (CVP) graph. Steps to develop the CVP graph: Step 1: Draw two axes of the graph from the origin (o), i.e., one horizontal axis (0-x) and the other vertical axis (0-y).

Codebreaker 10 1-isopropyl-3-methylcyclohexane. If you think codebreaker 10.1 iso file is your intellectual property and shouldn't be listed, please fill in DMCA complain and we remove file immediately. Also if visitors will get caught uploading multiple copyrighted files, their IP will be permanently banned from using our service.