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Chapter 20 Exercises Cost-Volume- Profit Analysis.

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Presentation on theme: "Chapter 20 Exercises Cost-Volume- Profit Analysis."— Presentation transcript:

1 Chapter 20 Exercises Cost-Volume- Profit Analysis

2 In-Class Exercise (Form groups and work exercise): Exercise No. Page HO 20-1 Handout High-Low Method In-Class Exercise (Form groups and work exercise): Exercise No. Page HO 20-1 Handout High-Low Method (Use the format, as reflected on the next slide, to begin the exercise) High-Low Method

3 Exercise Page HO 20-1 Handout High-Low Method HO 20-1 Handout High-Low Method Exercise Page HO 20-1 Handout High-Low Method HO 20-1 Handout High-Low Method

4 High-Low Method

5

6 500

7 High-Low Method

8 End of Exercise High-Low Method

9 Break-Even Analysis In-Class Exercise (Form groups and work exercise): Exercise No. Page E Break-even Analysis In-Class Exercise (Form groups and work exercise): Exercise No. Page E Break-even Analysis

10 Break-Even Analysis Exercise E20-25: Trendy Toes Co. produces sports socks that sell for $1.90 per package with a total variable cost of $0.95 per unit. The company’s annual fixed costs are $95,000. Requirements: (a) Compute the contribution margin per package (b) Compute the contribution ratio per package (c) Compute the break-even point in units (d) Compute the break-even point in dollars of sales Exercise E20-25: Trendy Toes Co. produces sports socks that sell for $1.90 per package with a total variable cost of $0.95 per unit. The company’s annual fixed costs are $95,000. Requirements: (a) Compute the contribution margin per package (b) Compute the contribution ratio per package (c) Compute the break-even point in units (d) Compute the break-even point in dollars of sales Break-Even Analysis

11 Exercise E20-25 (Part 1) Break-Even Analysis

12 Exercise E20-25 (Part 1) Break-Even Analysis

13 Exercise E20-25 (Part 2) Break-Even Analysis

14 Exercise E20-25 (Part 2) Break-Even Analysis

15 End of Exercise Break-Even Analysis

16 In-Class Exercise (Form groups and work exercise): Exercise No. Page E Break-even Point for Composite Units In-Class Exercise (Form groups and work exercise): Exercise No. Page E Break-even Point for Composite Units (Use the format, as reflected on the next slide, to begin the exercise) Composite Units

17 Exercise Page E Composite Units E Composite Units Exercise Page E Composite Units E Composite Units

18 Composite Units Exercise E20-32: Speedy’s Scooters plans acquire and sell two type of scooters (standard and chrome). Speedy expects to sell one standard scooter for every three chrome scooters (ratio of 1:3). The following additional information is provided. Standard Chrome Selling price………………. $ 55 $ 70 Variable cost……………… $ 30 $ 40 Monthly fixed costs are $23,000. Requirements: (1) How many of each type of scooter must Speedy’s Scooters sell each month to break even? (2) How many of each type of scooter must Speedy’s Scooters sell each month to earn $25,300? Exercise E20-32: Speedy’s Scooters plans acquire and sell two type of scooters (standard and chrome). Speedy expects to sell one standard scooter for every three chrome scooters (ratio of 1:3). The following additional information is provided. Standard Chrome Selling price………………. $ 55 $ 70 Variable cost……………… $ 30 $ 40 Monthly fixed costs are $23,000. Requirements: (1) How many of each type of scooter must Speedy’s Scooters sell each month to break even? (2) How many of each type of scooter must Speedy’s Scooters sell each month to earn $25,300?

19 Composite Units

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22 End of Exercise Composite Units


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