Profit And Volume Chart Flashcards
1
Q
What is a profit volume chart?
A
The profit volume chart is an alternative to the breakeven chart as it illustrates the relationship between profits and sales. It emphasizes the impact of changes in volume on profit
2
Q
What is the C/S ratio and what can we use it for?
A
The C/S ratio can be used to calculate the breakeven point in terms of sales revenue for single products. This is also the case when there are multiple products.
