Cost Volume and Profit Relationships

Definition: Contribution margin is equal to sales revenue less total variable expenses incurred to earn that revenue. Total variable expenses include ……

What is contribution margin (CM) ratio? Definition, explanation, formula, calculation and example of CM ratio.

Difference between traditional income statement and a contribution margin income statement. Format, use and examples.

Explanation of break-even point: The point at which total of fixed and variable costs of a business becomes equal to its total revenue is known as break-even ……

The method of calculating break-even point of a single product company has been discussed in the break-even point analysis article. In this article, I ……

An explanation of how a change in sales mix can affect the the dollar sales required to break even.

Margin of safety (MOS) is the difference between actual sales and break even sales. In other words, all sales revenue above the break-even point represents ……

Sometime management wants to earn a certain amount of profit during a certain period of time. This certain amount of profit is commonly known as target ……