【正文】 L e s s : v a r i a b l e e x p e n s e s 1 5 0 , 0 0 0 300 C o n t r i b u t i o n m a r g i n 1 0 0 , 0 0 0 200$ L e s s : f i x e d e x p e n s e s 8 0 , 0 0 0 P r o f i t B T 2 0 , 0 0 0$ W I N D B I C Y C L E C O .C o n t r i b u t i o n I n c o m e S t a t e m e n tF o r t h e M o n t h o f J u n eThe Basics of CostVolumeProfit Analysis Contribution Margin (CM) is the amount remaining from sales revenue after variable expenses have been deducted. 4 T o t a l P e r U n i tS a l e s ( 5 0 0 b i k e s ) 2 5 0 , 0 0 0$ 500$ L e s s : v a r i a b l e e x p e n s e s 1 5 0 , 0 0 0 300 C o n t r i b u t i o n m a r g i n 1 0 0 , 0 0 0 200$ L e s s : f i x e d e x p e n s e s 8 0 , 0 0 0 P r o f i t B T 2 0 , 0 0 0$ W I N D B I C Y C L E C O .C o n t r i b u t i o n I n c o m e S t a t e m e n tF o r t h e M o n t h o f J u n eThe Basics of CostVolumeProfit Analysis CM goes to cover fixed expenses. 5 T o t a l P e r U n i tS a l e s ( 5 0 0 b i k e s ) 2 5 0 , 0 0 0$ 500$ L e s s : v a r i a b l e e x p e n s e s 1 5 0 , 0 0 0 300 C o n t r i b u t i o n m a r g i n 1 0 0 , 0 0 0 200$ L e s s : f i x e d e x p e n s e s 8 0 , 0 0 0 P r o f i t B T 2 0 , 0 0 0$ W I N D B I C Y C L E C O .C o n t r i b u t i o n I n c o m e S t a t e m e n tF o r t h e M o n t h o f J u n eThe Basics of CostVolumeProfit Analysis After covering fixed costs, any remaining CM contributes to profit. 6 To t a l P e r U ni t P e r c e ntS a l e s ( 5 0 0 bi k e s ) 2 5 0 , 0 0 0$ 500$ 100%Le s s : v a r i a bl e e x pe ns e s 1 5 0 , 0 0 0 300 60%C on t r i bu t i on m a r gi n 1 0 0 , 0 0 0$ 200$ 40%Le s s : f i x e d e x pe ns e s 8 0 , 0 0 0 P r of i t B T 2 0 , 0 0 0$ The Contribution Approach For each additional unit Wind sells, $200 more in contribution margin will help to cover fixed expenses and profit. 7 The Contribution Approach Each month Wind must generate at least $80,000 in total CM to break even. To t a l P e r U ni t P e r c e ntS a l e s ( 5 0 0 bi k e s ) 2 5 0 , 0 0 0$ 500$ 100%Le s s : v a r i a bl e e x pe ns e s 1 5 0 , 0 0 0 300 60%C on t r i bu t i on m a r gi n 1 0 0 , 0 0 0$ 200$ 40%Le s s : f i x e d e x pe ns e s 8 0 , 0 0 0 P r of i t B T 2 0 , 0 0 0$ 8 T o t a l P e r U n i tS a l e s ( 400 b i k e s ) 2 0 0 , 0 0 0$ 500$ L e s s : v a r i a b l e e x p e n s e s 1 2 0 , 0 0 0 300 C o n t r i b u t i o n m a r g i n 8 0 , 0 0 0 200$ L e s s : f i x e d e x p e n s e s 8 0 , 0 0 0 P r o f i t B T $ 0W I N D B I C Y C L E C O .C o n t r i b u t i o n I n c o m e S t a t e m e n tF o r t h e M o n t h o f J u n eThe Contribution Approach If Wind sells 400 units in a month, it will be operating at the breakeven point. 9 T o t a l P e r U n i tS a l e s ( 401 b i k e s ) 2 0 0 , 5 0 0$ 500$ L e s s : v a r i a b l e e x p e n s e s 1 2 0 , 3 0 0 300 C o n t r i b u t i o n m a r g i n 8 0 , 2 0 0 200$ L e s s : f i x e d e x p e n s e s 8 0 , 0 0 0 P r o f i t B T 200$ W I N D B I C Y C L E C O .C o n t r i b u t i o n I n c o m e S t a t e m e n tF o r t h e M o n t h o f J u n eThe Contribution Approach If Wind sells one more bike (401 bikes), operating ine will increase by $200. 10 CVP Relationships in Graphic Form Viewing CVP relationships in a graph is often helpful. Consider the following information for Wind Co.: I nc om e 3 0 0 un i t sI nc om e 4 0 0 un i t sI nc om e 5 0 0 un i t sS a l e s 1 5 0 , 0 0 0$ 2 0 0 , 0 0 0$ 2 5 0 , 0 0 0$ Le s s : v a r i a bl e e x pe ns e s 9 0 , 0 0 0 1 2 0 , 0 0 0 1 5 0 , 0 0 0 C on t r i bu t i on m a r gi n 6 0 , 0 0 0$ 8 0 , 0 0 0$ 1 0 0 , 0 0 0$ Le s s : f i x e d e x pe ns e s 8 0 , 0 0 0 8 0 , 0 0 0 8 0 , 0 0 0 P r of i t B T ( 2 0 , 0 0 0 )$ $ 2 0 , 0 0 0$ 11 5 0 , 0 0 01 0 0 , 0 0 01 5 0 , 0 0 02 0 0 , 0 0 02 5 0 , 0 0 03 0 0 , 0 0 03 5 0 , 0 0 04 0 0 , 0 0 04 5 0 , 0 0 0 100 200 300 400 500 600 700 800CVP Graph Fixed expenses Units Total Expenses Total Sales 12 5 0 , 0 0 01 0 0 , 0 0 01 5 0 , 0 0 02 0 0 , 0 0 02 5 0 , 0 0 03 0 0 , 0 0 03 5 0 , 0 0 04 0 0 , 0 0 04 5 0 , 0 0 0 100 200 300 400 500 600 700 800Units CVP Graph Breakeven point 13 Contribution Margin Ratio The contribution margin ratio is: For Wind Bicycle Co. the ratio is: $ 80,000 $200,000 = 40% Total CM Total sales CM Ratio = 14 Co