Cost-volume-profit relationships and variable costing
Please answer the questions below completely and explain your answers.
- Explain what is the contribution margin ratio and examine how it is used in managerial decision-making.
- Examine how the break-even point would change for each scenario: (a) the selling price per unit increases; (b) fixed cost decreases throughout the entire range of activity; (c) variable cost per unit decreases.
- Compare and contrast between variable costing and absorption costing.
- Explain and give examples of computing unit product cost under variable costing and absorption costing?
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