Cost Volume Profit Analysis

Question 1

BE units =

Answer 1

Total FC / weighted average UCM

Question 2

UCM =

Answer 2

SP/unit - VC/unit

Question 3

Profit =

Answer 3

UCM x Volume - FC

Question 4

Sales unit to achieve TOP =

Answer 4

(FC + TOP) / UCM

Question 5

OP =

Answer 5

NP / (1-T)

Question 6

Decision models and uncertainty:

Answer 6

1. Identify a choice criteriation
2. Identify a set of alternative actions
3. Identify a set of events
4. Assign a probability to each mutually exclusive events that can occur
5. Identify the set of possible outcomes
6. Expected (monetary) value: weighted average value.