Module 10 Assignment

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Module 10 Assignment
Cost Volume Profit Analysis can plan many different roles in the overall management decision
making process. Consider the following problems related to cost accounting and in a Word
document, provide at least a 2-paragraph response to each one. Be sure to proofread your
work prior to submitting to the drop box.
•
Describe cost volume profit analysis and how management can use it in more than just
financial analysis.
• Explain the main differences between operating income and net income overall for a
business.
• Explain and provide the calculation for how to derive the following: contribution margin,
contribution margin per unit, and contribution margin percentage.
• Describe what sensitivity analysis is and how it could be used by management to
determine the proper course to take for decisions that need to be made for the firm.
• How might a company with multiple products derive its breakeven point? What are some
of the challenges in determining this?

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