【正文】 379 CHAPTER 17 COSTVOLUMEPROFIT ANALYSIS QUESTIONS FOR WRITING AND DISCUSSION 1. CVP analysis allows managers to focus on prices, volume, costs, profits, and sales mix. Many different “whatif” questions can be asked to assess the effect on profits of changes in key variables. 2. The unitssold approach defines sales volume in terms of units of product and gives answers in these same terms. The salesrevenue approach defines sales volume in terms of revenues and provides answers in these same terms. 3. Breakeven point is the level of sales activity where total revenues equal total costs, or where zero profits are earned. 4. At the breakeven point, all fixed costs are covered. Above the breakeven point, only variable costs need to be covered. Thus, contribution margin per unit is profit per unit, provided that the unit selling price is greater than the unit variable cost (which it must be for breakeven to be achieved). 5. The contribution margin is very likely negative (variable costs are greater than revenue). When this happens, increasing sales volume just means increasing losses. 6. Variable cost ratio = Variable costs/Sales. Contribution margin ratio = Contribution margin/Sales. Also, Contribution margin ratio = 1 – Variable cost ratio. Basically, contribution margin and variable costs sum to sales. Therefore, if contribution margin accounts for a particular percentage of sales, variable costs account for the rest. 7. The increase in contribution margin ratio means that the amount of every sales dollar that goes toward covering fixed cost and profit has just gone up. As a result, the breakeven point will go down. 8. No. The increase in contribution is $9,000 ( $30,000), and the increase in advertising is $10,000. This is an important example because the way the problem is phrased influences us to pare increased revenue with increased fixed cost. This parison is irrelevant. The important parison is between contribution margin and fixed cost. 9. Sales mix is the relative proportion sold of each product. For example, a sales mix of 4:1 means that, on average, of every five units sold, four are of the first product and one is of the second product. 10. Packages of products, based on the expected sales mix, are defined as a single product. Price and cost information for this package can then be used to carry out CVP analysis. 11. A multipleproduct firm may not care about the individual product breakeven points. It may feel that some products can even lose money as long as the overall picture is profitable. For example, a pany that produces a full line of spices may not make a profit on each one, but the availability of even the more unusual spices in the line may persuade grocery stores to purchase from the pany. 12. Ine taxes do not affect the breakeven point at all. Since taxes are a percentage of ine, zero ine will generate zero taxes. However, CVP analysis is affected by ine taxes in that a target profit must be figured in beforetax ine since the CVP equations do not include the ine tax rate. 13. A change in sales mix will change the contribution margin of the package (defined by the sales mix) and, thus, will change the units needed to break even. 14. Margin of safety is the sales activity in excess of that needed to break even. Operating leverage is the use of fixed costs to extract higher percentage changes in profits as sales activity changes. It is achieved by raising fixed costs and lowering variable costs. The greater the degree of operating leverage, the more that changes in sales activity will affect profits. As the margin of safety increases, risk decreases. Increases in leverage raise risk. 15. Activitybased costing reminds managers that costs may vary with respect to variables other than units. Some costs vary according to the number of batches or number of products. 380 This insight prevents a singleminded focus on unitbased costs, to the exclusion of factors which might change fixed costs. EXERCISES 17–1 1. Contribution margin = Price – Variable costs = $55 – $37 = $18 2. Breakeven in units = $41,400/$18 = 2,300 purses 3. Sales ($55 ? 6,000) $330,000 Less: Variable costs ($37 ? 6,000) 222,000 Contribution margin $108,000 Less: Fixed costs 41,400 Operating ine $ 66,600 17–2 1. Breakeven in units = $270,000/($50 – $23) = 10,000 refrigerators 2. Sales ($50 ? 16,000) $800,000 Less: Variable costs ($23 ? 16,000) 368,000 Contribution margin $432,000 Less: Fixed costs 270,000 Operating ine $162,000 3. New breakeven in units = $270,000/($50 – $20) = 9,000 refrigerators 17–3 1. Breakeven in units = $4,325/($ – $) = 1,730 pieces of pottery 2. Number of units to earn $7,000 profit: = ($4,325 + $7,000)/($ – $) = 4,530 pieces of pottery Sales ($ ? 4,530) $29,445 Less: Variable costs ($4 ? 4,530) 18,120 Contribution margin $11,325 Less: Fixed costs 4,325 381 Operating ine $ 7,000 17–4 1. Breakeven in units = $2,380/($60 – $25) = 68 jobs per month 2. 65 Jobs 100 Jobs Sales ............................................... $ 3,900 $ 6,000 Less: Variable cost ..................... 1,625 2,500 Contribution margin .............. $ 2,275 $ 3,500 Less: Fixed expenses ................ 2,380 2,380 Operating ine .................. $ (105) $ 1,120 At 100 jobs, the profit is $1,120。 at 65 jobs, the loss is $105. 3. Breakeven in units = $2,380/($75 – $25) = or 48 jobs per month 17–5 ($65,000)X = $1,500(20) + ($65,000)X $3,900X = $30,000 + $1,300X $2,600X = $30,000 X = cars per month Monthly revenue = ($65,000) = $750,003 Note: Think of this as average monthly revenue. That is,