Assignment 1 Cost Volume Profit Analysis

Assignment 1 Cost Volume Profit Analysis

By the due date assigned, respond to the following in the Discussion Area below:
Continuing the scenario from the Module 3 discussion:
Identify and classify the fixed and variable manufacturing costs for producing your product.

Assignment 1 Cost Volume Profit Analysis Describe what contribution margin means and how you would calculate it for your division.
What types of decisions could you make using the contribution margin? Give specific examples of how you might use the contribution margin to make decisions about product pricing, acceptance of special orders, increasing or decreasing component costs, or incurring additional advertising expenses.
Be sure to cite any sources using APA style. You may use this APA Citation Helper as a guide.
Through the end of the module, provide substantive responses to at least two other students’ initial posts.
Assignment 1 Grading Criteria
Maximum Points
Initial Response
20
Discussion Participation
20
Writing Craftsmanship and Ethical Scholarship
10
Total:
50

Assignment 1 Cost Volume Profit Analysis

Assignment 2: Cost, Volume, Profit Analysis

Variable costs can be defined as ones that change based on the activity or the volume of production. On the other hand, fixed costs do not change regardless of the volume of production (Wyman-Pain, Bian, Thomas & Li 2018).

Identify and classify the fixed and variable manufacturing costs for producing your product.

Based on the products produced by my company described in module 2, a good example of a fixed cost is rent. Even if the company reduces its operations or closes down for a while, the rent will always be paid. Another fixed cost is the basic salaries paid to employees (Moraga‐González, Sándor, & Wildenbeest, 2017). As per the agreements in module 2, all employees were to be given a basic salary of 250 USD in addition to commission charged for sales above a certain threshold. Variable manufacturing costs are the raw materials involved such as printing papers, commission offered to employees as well as production supplies.

Describe what contribution margin means and how you would calculate it for your division. Contribution margin refers to the price of products

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