8.14: Putting It Together- Cost Volume Profit Analysis
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- 45903
Wow! Module 8 included a ton of awesome information to help you figure out net profit, contribution margin, fixed costs and how product mix can affect your net profit.
You also learned the importance of changes in income, and how, due to operating leverage, can have a huge affect on net profit.
The breakdown between types of cost structures is helpful when trying to make decisions between variable and fixed costs. It becomes especially important when planning a potential automation system that involves a large capital investment.
So to review, here are the basic formulas we have discussed in this module:
Note how many interconnect, to give you different information. Make sure to make note of these formulas to help you figure out selling prices and profitability!
- Putting It Together: Cost Volume Profit Analysis. Authored by: Freedom Learning Group. Provided by: Lumen Learning. License: CC BY: Attribution