August 2011
Beginner to intermediate
750 pages
26h 1m
English
Content preview from Managerial: Accounting
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3
COST-VOLUME-PROFIT ANALYSIS AND PRICING DECISIONS
After studying this chapter, you should be able to meet the following learning objectives (LO).
- Calculate the breakeven point in units and sales dollars. (Unit 3.1)
- Calculate the level of activity required to meet a target income. (Unit 3.2)
- Determine the effects of changes in sales price, cost, and volume on operating income. (Unit 3.2)
- Define operating leverage and explain the risks associated with the tradeoff between variable and fixed costs. (Unit 3.2)
- Calculate the multiproduct breakeven point and level of activity required to meet a target income. (Unit 3.3)
- Define markup and explain cost-plus pricing. (Unit 3.4)
- Explain target costing and calculate a target cost. (Unit 3.4)
The Pitch
Martin Keck, vice president for sales at Universal Sports Exchange, was talking with his sales team at the monthly sales meeting. “As you know, the company missed its sales target last year. We were expecting to sell 10% more jerseys than we did. And we all saw the effect that the lower sales level had on our bottom line. When we miss our sales targets, it affects what everyone else in the company can accomplish because they count on us to generate revenue.”
Sarah Yardley, one of the company's top salespeople, had been listening intently ...
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.