Homework answers / question archive /   summarizes the effects of changes in an organization's volume of activity on its costs, revenue, and profit a necessary first step in any cost-volume-profit analysis the volume activity where the organization's revenues and expenses are equal; at this amount of sales, the organization has no profit or loss = total sales revenue - total variable expenses; the amount of revenue that is available to contribute to covering fixed expenses after all variable expenses have been covered = fixed expenses / unit contribution margin the unit contribution margin divided by the unit sales price = fixed expenses / contribution margin ratio this graph captures the relationship between profit and volume of activity this is determined by the intersection of the total-revenue line and the total-expense line Alternative graph that highlights amount of profits and losses; intercepts the vertical axis at the amount equal to fixed expenses and the zero activity level; crosses the horizontal axis at the break-even point

  summarizes the effects of changes in an organization's volume of activity on its costs, revenue, and profit a necessary first step in any cost-volume-profit analysis the volume activity where the organization's revenues and expenses are equal; at this amount of sales, the organization has no profit or loss = total sales revenue - total variable expenses; the amount of revenue that is available to contribute to covering fixed expenses after all variable expenses have been covered = fixed expenses / unit contribution margin the unit contribution margin divided by the unit sales price = fixed expenses / contribution margin ratio this graph captures the relationship between profit and volume of activity this is determined by the intersection of the total-revenue line and the total-expense line Alternative graph that highlights amount of profits and losses; intercepts the vertical axis at the amount equal to fixed expenses and the zero activity level; crosses the horizontal axis at the break-even point

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1. summarizes the effects of changes in an organization's volume of activity on its costs, revenue, and profit
2. a necessary first step in any cost-volume-profit analysis
3. the volume activity where the organization's revenues and expenses are equal; at this amount of sales, the organization has no profit or loss
4. = total sales revenue - total variable expenses; the amount of revenue that is available to contribute to covering fixed expenses after all variable expenses have been covered
5. = fixed expenses / unit contribution margin
6. the unit contribution margin divided by the unit sales price
7. = fixed expenses / contribution margin ratio
8. this graph captures the relationship between profit and volume of activity
9. this is determined by the intersection of the total-revenue line and the total-expense line
10. Alternative graph that highlights amount of profits and losses; intercepts the vertical axis at the amount equal to fixed expenses and the zero activity level; crosses the horizontal axis at the break-even point