CHAPTER 4 NOTES Cost-Volume-Profit analysis considers, individually and in combination, the effect(s) on profit of Selling price Sales volume (activity) Variable cost per unit Total fixed cost Product mix The contribution margin income statement (introduced in Chapter 3 if you need to refer back) can be expressed in total dollars, in dollars per unit (for sales and variable costs only), and also, as we’ll see a little further on, as a percent of sales (usually, but not always, for variable costs…
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