Cost-Volume-Profit (CVP) Analysis
—a thread
—a thread
u know that feeling na ang dali-dali lang i-memorize yung mga formulas sa CVP pero when it comes to problem solving, nga-nga?
kasi nga whe only know the how and not the why.
kasi nga whe only know the how and not the why.
BEP - no income nor loss, contribution margin is equal to the fixed costs (CM=FC)
Margin of Safety = level of sales before it reaches the BEP (Actual Sales -Breakeven Sales)
Margin of Safety = level of sales before it reaches the BEP (Actual Sales -Breakeven Sales)
Since Total Sales is the sum of BEP and MOS, u can use the technique below.
Let us say na 75% ang variable cost ratio ang given, just get the CM Ratio (25%) to compute for the fixed cost (BEP Sales *CM Ratio) kasi nga sa breakeven, CM=FC.
Let us say na 75% ang variable cost ratio ang given, just get the CM Ratio (25%) to compute for the fixed cost (BEP Sales *CM Ratio) kasi nga sa breakeven, CM=FC.
Also, if given ang net income, just divide it sa CM Ratio, u'll get MOS Sales and add the BEP Sales, makukuha ang Actual Sales.
Same goes sa FC, just divide it sa CM Ratio and u'll get BEP Sales and add yung MOS Sales, makukuha mo ang Actual Sales.
Same goes sa FC, just divide it sa CM Ratio and u'll get BEP Sales and add yung MOS Sales, makukuha mo ang Actual Sales.
So in this technique, mas naiintindihan natin yung mga formula and hindi memorization lamang.
This technique is used sa mga problems na limited ang mga given, the short but complex problems.
This technique is used sa mga problems na limited ang mga given, the short but complex problems.
So here's an example. To answer, ilagay mo muna yung mga given and then syempre analyze ng konti.
So what I did here, nilagay ko lahat ng amounts and if u notice, fixed cost = cm sa BEP at yung net income = sa CM ng MOS.
Also, if let us say BEP Sales is 75%, we presume that MOS Sales is 25% kasi Actual Sales is 100% kasi sum sya ng BEP at MOS.
Also, if let us say BEP Sales is 75%, we presume that MOS Sales is 25% kasi Actual Sales is 100% kasi sum sya ng BEP at MOS.
And I, thank you 🫶
Hey, you are not alone in this battle. Kaya let's help one another. Papasa tayong lahat 🫰
Loading suggestions...