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Accounting For Management
Cost volume and profit relationships
Compute and explain contribution margin and contribution margin ratio (CM ratio).
Prepare contribution margin income statement.
Compute break-even point of a single and a multiproduct company. Explain the importance of break-even point figure for a business.
Explain sales mix. How does a change in sales mix impact contribution margin, break-even point and net operating income of a business?
Compute and explain margin of safety for a business.
Find out the sales volume required to earn a certain amount of profit (target profit analysis).
Number of pages:
Approximate time required:
2.5 – 3 hours
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Contribution margin ratio
Contribution margin income statement
Break-even point analysis
Break-even analysis with multiple products
Sales mix and break-even point analysis
Margin of safety
Target Profit Analysis