【正文】 Dresses by Mary $ (000) 245 Revenue 231 Total expenses 3,000 3,500 Units Breakeven 210 84 3 30 Target Operating Ine... – can be determined by using any of three methods: 1 The equation method 2 The contribution margin method 3 The graph method 3 31 Target Operating Ine n Insert the target operating ine in the formula and solve for target sales either in dollars or units. n (Fixed costs + Target operating ine) divided either by Contribution margin percentage or Contribution margin per unit 3 32 Target Operating Ine n Assume that Mary wants to have an operating ine of $14,000. n How many dresses must she sell? n ($84,000 + $14,000) 247。 UCM n $84,000 247。 $70 = 40% 3 18 Essentials of CostVolumeProfit (CVP) Analysis n If Mary sells 3,000 dresses, revenues will be $210,000 and contribution margin would equal 40% $210,000 = $84,000. AF E D E R A L R E S E R V E N O T ET H E U N I T E D S T A T E S O F A M E R I C AT H E U N I T E D S T A T E S O F A M E R I C AL 7 0 7 4 4 6 2 9 F1 21 21 21 2L 7 0 7 4 4 6 2 9 FO N E D O L L A RO N E D O L L A RW A S H I N G T O N , D . C .T H I S N O T E I S L E G A L T E N D E RF O R A L L D E B T S , P U B L I C A N D P R I V A T ES E R I E S1 9 8 5H 2 9 33 19 Learning Objective 3 Determine the breakeven point and target operating ine using the equation, contribution margin, and graph methods 3 20 Breakeven Point... – is the sales level at which operating ine is zero. ? At the breakeven point, sales minus variable expenses equals fixed expenses. ? Total revenues = Total costs 3 21 Abbreviations n USP = Unit selling price n UVC = Unit variable costs n UCM = Unit contribution margin n CM% = Contribution margin percentage n FC = Fixed costs 3 22 Abbreviations n Q = Quantity of output (units sold or manufactured) n OI = Operating ine n TOI = Target operating ine n TNI = Target ine 3 23 Methods for Determining Breakeven Point n Breakeven can be puted by using either the equation method, the contribution margin method, or the graph method. 3 24 Equation Method n With the equation approach, breakeven sales in units is calculated as follows: n (Unit sales price Units sold) – (Variable unit cost x units sold) – Fixed expenses = Operating ine 3 25 Equation Method n Using the equation approach, pute the breakeven for Dresses by Mary. n $70Q – $42Q – $84,000 = 0 n $28Q = $84,000 n Q = $84,000 247。3 1 CostVolumeProfit Relationships Chapter 3 3 2 Introduction n This chapter examines one of the most basic planning tools available to managers: costvolumeprofit analysis. n Costvolumeprofit analysis examines the behavior of total revenues, total costs, and operating ine as changes occur in the output level, selling price, variable costs per unit, or fixed costs. 3 3 Learning Objectives 1 Understand basic costvolumeprofit (CVP) assumptions 2 Explain essential features of CVP analysis 3 Determine the breakeven point and target operating ine using the equation, contribution margin, and graph methods 3 4 Learning Objectives 4 Incorporate ine tax considerations into CVP analysis 5 Explain the use of CVP analysis in decision making and how sensitivity analysis ca