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Agenda:: A Little More Vocabulary C-V-P Analysis Thursday's Class Group Problem Solving
Agenda:: A Little More Vocabulary C-V-P Analysis Thursday's Class Group Problem Solving
or
BEunits = FC/CM
Breakeven revenue
SP * BEunits = SP*(FC/CM)
Breakeven revenue = FC/(CM/SP)
Assumptions underlying CVP analysis
E() = ?
A 2% selling commission increase is expected to increase
overall demand by 10,000. Should they do it?
E() = ?
Example 3: Kaplan Co.
CM* = $6.50
Prestige