Write up on Cost, Volume and Profit Analysis

Write up on Cost, Volume and Profit Analysis

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Write up on Cost, Volume and Profit Analysis

Write a 350 to 700 word paper, using APA guidelines, that addresses the following:
o Explain the components of cost-volume-profit analysis.
o What does each of the components mean?
o Based on the formulas you have reviewed, what happens to contribution margin per
unit when unit selling prices increase? Illustrate your explanation with an example
from a fictitious company of how an increase in unit selling prices might affect
contribution margin.
o When fixed costs decrease, what does this do for sales? Illustrate your explanation
with an example from a fictitious company.
o Define contribution ratios.
o What happens to contribution ratios as one of the components changes?

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