Professional Documents
Culture Documents
CH 4 TR
CH 4 TR
of Managerial Accounting, 5e
DASAR-DASAR
Akuntansi Manajerial, edisi 5
CHAPTER 4:
COST-VOLUME-PROFIT
ANALYSIS: A MANAGERIAL
PLANNING TOOL
Cornerstones of Managerial
Accounting, 5e
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Bab 4: Analisis Biaya-Volume-
Laba: Alat Perencanaan Manajerial
Dasar Akuntansi Manajerial, 5e
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Learning Objectives
1. Determine the break-even point in number of units
and in total sales dollars.
2. Determine the number of units that must be sold,
and the amount of revenue required, to earn a
targeted profit.
3. Prepare a profit-volume graph and a cost-volume-
profit graph, and explain the meaning of each.
4. Apply cost-volume-profit analysis in a multiple-
product setting.
5. Explain the impact of risk, uncertainty, and changing
variables on cost-volume-profit analysis.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Tujuan Pembelajaran
1. Tentukan titik impas dalam jumlah unit dan total angka
penjualan.
2. Tentukan jumlah unit yang harus dijual, dan jumlah
pendapatan yang dibutuhkan, untuk mendapatkan
keuntungan yang ditargetkan.
3. Siapkan grafik volume keuntungan dan grafik biaya-
volume-keuntungan, dan jelaskan arti masing-masing.
4. Terapkan analisis biaya-volume-keuntungan dalam
pengaturan beberapa produk.
5. Jelaskan dampak dari risiko, ketidakpastian, dan
perubahan variabel pada analisis biaya-volume-
keuntungan.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Break-Even Point
in Units and Sales Dollars
Cost-volume-profit (CVP) analysis estimates
how changes in the following three factors affect
a company’s profit.
Costs (both variable and fixed)
Sales volume
Price
Companies use CVP analysis to help them reach
important benchmarks, like breakeven point.
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
TITIK-IMPAS DALAM UNIT DAN
PENJUALAN SALAM DOLAR
Analisis biaya-volume-laba (CVP) memperkirakan
bagaimana perubahan dalam tiga faktor berikut
mempengaruhi keuntungan perusahaan.
Biaya (keduanya variabel dan tetap)
Volume penjualan
Harga
Perusahaan menggunakan analisis CVP untuk
membantu mereka mencapai tolok ukur penting,
seperti titik impas.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Break-Even Point in Units and in
Sales Dollars (cont.)
The break-even point is the point where total
revenue equals total cost (i.e., the point of zero
profit).
The level of sales at which contribution margin just
covers fixed costs and when operating income is
equal to zero.
If new companies experience losses (negative
operating income) initially, they view their first
break-even period as a significant milestone.
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
TITIK-IMPAS DALAM UNIT DAN
PENJUALAN SALAM DOLAR(Lanjutan)
Titik impas adalah titik di mana total pendapatan
sama dengan biaya total (yaitu, titik nol
keuntungan).
Tingkat penjualan dimana margin kontribusi
hanya mencakup biaya tetap dan bila
pendapatan operasional sama dengan nol.
Jika perusahaan baru mengalami kerugian
(negative operating income) pada awalnya,
mereka melihat periode impas pertama mereka
sebagai tonggak penting.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Break-Even Point in Units and in
Sales Dollars (cont.)
Jumlah
1 The unitof
number yang
unitsharus dijual be
that must
untuk
sold impaseven
to break
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Using Operating Income
in Cost-Volume-Profit Analysis (cont.)
Variable
overhead
Penjualan $XXX
Total biaya variabel (XXX)
Overhead Total margin kontribusi $ XXX
variabel
Total biaya tetap (XXX)
Laba operasi $ XXX
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Using Operating Income in
Cost-Volume-Profit Analysis (cont.)
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Menggunakan Penghasilan Operasional dalam
Analisis Biaya-Volume-Laba (lanjutan)
Margin kontribusi adalah selisih antara biaya penjualan
dan variabel. Ini adalah jumlah pendapatan penjualan
yang tersisa setelah semua biaya variabel ditutupi
sehingga dapat digunakan untuk berkontribusi terhadap
biaya tetap dan pendapatan operasional.
Penjualan $XXX
Total biaya variabel (XXX)
Total margin kontribusi $ XXX
Total biaya tetap (XXX)
Laba operasi $ XXX
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.1
Preparing a Contribution Margin
Income Statement
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.1
Menyusun Laporan Laba Rugi Margin
Kontibusi
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.1
Preparing a Contribution Margin
Income Statement (cont.)
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.1
Menyusun Laporan Laba Rugi Margin
Kontibusi(Lanjutan)
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.1
Preparing a Contribution Margin
Income Statement (cont.)
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.1
Menyusun Laporan Laba Rugi Margin
Kontibusi(Lanjutan)
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Break-Even Point in Units
If the contribution margin income statement is
recast as an equation, it becomes more useful for
solving CVP problems.
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Titik Impas dalam Unit
Jika kontribusi margin laporan laba rugi direstorasi
sebagai sebuah persamaan, maka akan lebih bermanfaat
untuk menyelesaikan masalah CVP.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.2
Calculating the Break-Even
Point in Units
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.2
Menghitung Titik Impas dalam Unit
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.2
Calculating the Break-Even Point in Units
(cont.)
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.2
Calculating the Break-Even
Point in Units(Lanjutan)
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Break-Even Point in Units
If the contribution margin income statement is
recast as an equation, it becomes more
useful for solving CVP problems.
Basic CVP
Equation
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Titik Impas dalam Unit
Jika kontribusi margin laporan laba rugi direstorasi
sebagai sebuah persamaan, maka akan menjadi lebih
berguna untuk memecahkan masalah CVP.
Persamaan CVP
dasar
Laba operasi = (Harga x Jumlah unit yang Terjual) – (Biaya Variabel per
Unit x Jumlah Unit yang Terjual) – Total Biaya Tetap
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Break-Even Point in Units (cont.)
Break-even units are equal to the fixed cost
divided by the contribution margin per unit.
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Titik Impas dalam Unit(Lanjutan)
Unit impas sama dengan biaya tetap dibagi
dengan margin kontribusi per unit.
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Break-Even Point in Sales Dollars
Managers using CVP analysis may use sales
revenue as the measure of sales activity instead
of units sold. A units sold measure can be
converted to a sales revenue measure by
multiplying the unit selling price by the units sold:
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Titik Impas dalam Nilai Penjualan
Manajer yang menggunakan analisis CVP dapat
menggunakan pendapatan penjualan sebagai ukuran
aktivitas penjualan, bukan unit yang terjual. Ukuran unit
yang terjual dapat dikonversi menjadi ukuran pendapatan
penjualan dengan mengalikan harga jual unit dengan
satuan yang terjual:
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Break-Even Point in Sales Dollars
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Titik Impas dalam Nilai Penjualan
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Variable Cost Ratio and Contribution Margin Ratio
Alternatively:
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Rasio Biaya Variabel dan Rasio
Margin Kontribusi
Setiap jawaban yang dinyatakan dalam unit yang terjual dapat dengan mudah
dikonversi menjadi satu yang dinyatakan dalam pendapatan penjualan.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.3
Calculating the Variable Cost Ratio and the
Contribution Margin Ratio
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.3
Menghitung Rasio Biaya Variabel dan Rasio
Margin Kontribusi
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.3
Calculating the Variable Cost Ratio
and the Contribution Margin Ratio (cont.)
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.3
Menghitung Rasio Biaya Variabel dan Rasio
Margin Kontribusi
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Fixed Cost’s Relationship, Variable
Cost Ratio, Contribution Margin Ratio
Since the total contribution margin is the revenue
remaining after total variable costs are covered, it
must be the revenue available to cover fixed
costs and contribute to profit.
How does the relationship of fixed cost to
contribution margin affect operating income?
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Hubungan Biaya Tetap, Variabel
Rasio Biaya, Rasio Margin Kontribusi
Karena total margin kontribusi adalah sisa pendapatan
setelah total biaya variabel tercakup, maka pendapatan
harus tersedia untuk menutupi biaya tetap dan
berkontribusi terhadap keuntungan.
Bagaimana hubungan antara biaya tetap dengan margin
kontribusi mempengaruhi pendapatan operasional?
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Fixed Cost’s Relationship, Variable
Cost Ratio, Contribution Margin Ratio (cont.)
LO-2
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Unit yang Harus Trejual untuk Meraih Target Laba
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Calculating Break-Even in Sales
Dollars
The equation to figure the break-even sales
dollars is:
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Minghitung Titik Impas dalam Nilai penjualan dalam
Dollar
Persamaan untuk mencari angka penjualan
impas adalah:
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.4
Calculating the Break-Even Point
in Sales Dollars
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.4
Menghitung Titik Impas Nilai Penjualan dalam
Dollar
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.4
Calculating the Break-Even Point
in Sales Dollars (cont.)
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.4
Menghitung Titik Impas Nilai Penjualan dalam
Dollar(Lanjutan)
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.4
Calculating the Break-Even Point
in Sales Dollars (cont.)
LO-1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.4
Menghitung Titik Impas Nilai Penjualan dalam
Dollar(Lanjutan)
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.5
Calculating Number of Units to Be Sold to
Earn A Target Operating Income (cont.)
LO-2
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.5
Menghitung Jumlah Unit yang Terjual untuk
Mendapatkan Target Pendapatan Operasional
(lanjutan)
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.5
Calculating Number of Units to Be Sold to
Earn A Target Operating Income (cont.)
LO-2
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.5
Menghitung Jumlah Unit yang Terjual untuk
Mendapatkan Target Pendapatan Operasional
(lanjutan)
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Sales Revenue to Achieve a Target Income (cont.)
LO-2
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Pendapatan Penjualan untuk Mencapai Target
Pendapatan (lanjutan)
Untuk menjawab pertanyaan tersebut,
tambahkan target pendapatan operasional
sebesar $ 37,500 ke biaya tetap $ 45.000 dan
bagi dengan rasio margin kontribusi. Persamaan
ini adalah:
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Sales Revenue to
Achieve a Target Income
How much sales revenue must Whittier generate
to earn an operating income of $37,500?
This question is similar to the one we asked
earlier in terms of units but phrases the question
directly in terms of sales revenue.
LO-2
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Pendapatan Penjualan untuk Mencapai Target
Pendapatan
Berapa besar pendapatan penjualan Whittier
yang dihasilkan untuk menghasilkan pendapatan
operasional sebesar $ 37.500?
Pertanyaan ini mirip dengan yang kita tanyakan
sebelumnya dalam hal unit tapi ungkapan
pertanyaannya secara langsung dalam hal
pendapatan penjualan.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.6
Calculating Sales Needed to
Earn a Target Operating Income
LO-2
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.6
Menghitung Penjualan yang Dibutuhkan untuk
Mendapatkan Target Pendapatan Operasional
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.6
Calculating Sales Needed to
Earn A Target Operating Income (cont.)
LO-2
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.6
Menghitung Penjualan yang Dibutuhkan untuk
Mendapatkan Target Pendapatan Operasional
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Impact of Change in Revenue
on Change in Profit
Assuming that fixed costs remain unchanged, the
contribution margin ratio can be used to find the
profit impact of a change in sales revenue.
To obtain the total change in profits from a
change in revenues, multiply the contribution
margin ratio times the change in sales:
LO-3
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
The Cost-Volume-Profit Graph
LO-3
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
CVP Analysis Assumptions
Major assumptions of CVP analysis include:
1 2
Linear revenue and cost
Selling prices and costs
functions remain
are known with
constant over the
certainty.
relevant range.
3 4
Sales mix is known with
All units produced are
certainty for multiple-
sold; no finished goods
product break-even
inventories remain.
settings. LO-3
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Multiple-Product Analysis
Cost-volume-profit analysis is simple in the
single-product setting. However, most firms
produce and sell a number of products or
services.
How do we adapt the formulas used in a single-
product setting to a multiple-product setting?
LO-4
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Multiple-Product Analysis (cont.)
One important distinction is to separate direct
fixed expenses from common fixed expenses.
Direct fixed expenses are those fixed costs that can
be traced to each segment and would be avoided if the
segment did not exist.
Common fixed expenses are the fixed costs that are
not traceable to the segments and would remain even if
one of the segments was eliminated.
LO-4
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Break-Even Calculations
for Multiple Products
When more than one product is produced and
sold, managers must estimate the sales mix and
calculate a package contribution margin.
Sales mix is the relative combination of products
being sold by a firm.
Fixed Costs
Break-Even Packages =
Package Contribution Margin
LO-4
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.7
Calculating The Break-Even Units
for a Multiple-Product Firm (cont.)
LO-4
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.7
Calculating The Break-Even Units
for a Multiple-Product Firm (cont.)
LO-4
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.7
Calculating The Break-Even Units
for a Multiple-Product Firm (cont.)
LO-4
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.8
Break-Even Sales Dollars
for a Multiple-Product Firm (cont.)
LO-4
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.8
Break-Even Sales Dollars
for a Multiple-Product Firm (cont.)
LO-4
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Finding the Break-Even Point for a New
Business
LO-4
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Finding the Break-Even Point for a New
Business (cont.)
LO-4
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cost-Volume-Profit Analysis and
Risk and Uncertainty
Managers must be aware of so many factors in
our dynamic world. CVP analysis is a tool that
managers use to handle risk and uncertainty.
?
h an g es in Risks?
C
?
prices?
Fixed
?
aint y?? costs?
r t
Unce
Variable
costs??
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Introducing Risk and Uncertainty
An important assumption of CVP analysis is that
prices and costs are known with certainty.
However, risk and uncertainty are a part of
business decision making and must be dealt with
somehow.
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Methods to Deal with
Uncertainty and Risk
1. Management must realize the
uncertain nature of future prices,
costs, and quantities.
2. Management must assume a
breakeven “band” rather than a
breakeven point.
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Margin of Safety and
Operating Leverage
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Margin of Safety
The margin of safety is the units sold or the
revenue earned above the break-even volume.
For example, if the break-even volume for a
company is 200 units and the company is currently
selling 500 units, the margin of safety in units is:
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Margin of Safety (cont.)
If the break-even volume for a company is
$200,000 and the current revenues are $500,000,
the margin of safety in sales revenue is:
Revenue - Break-even volume
= $500,000 – 200,000 = $300,000
The margin of safety as a percentage of total
sales dollars can then be expressed as:
Margin of safety ÷ Revenues
= $300,000 ÷ $500,000 = 60%
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.9
Computing the Margin of Safety
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Operating Leverage
Operating leverage is use of fixed costs to
extract higher percentage changes in profits as
sales activity changes.
Measure of the proportion of fixed costs in a
company’s cost structure.
It is used as an indicator of how sensitive profit is
to changes in sales volume.
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Operating Leverage
The degree of operating leverage (DOL) can be
measured for a given level of sales by taking the
ratio of contribution margin to operating income
or:
Contribution margin ÷ Operating income
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.10
Computing the Degree of
Operating Leverage
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.10
Computing the Degree of
Operating Leverage (cont.)
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Summary of Operating Leverage
Operating Leverage
HIGH LOW
% profit increase with sales Large Small
increase
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.11
Impact of Increased Sales on Operating
Income: Degree of Operating Leverage
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Cornerstone 4.11
Impact of Increased Sales on Operating
Income: Degree of Operating Leverage
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Sensitivity Analysis
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Using Contribution Margin Income Statements
To Consider Varying Scenarios
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
Using Contribution Margin Income Statements
To Consider Varying Scenarios (cont.)
LO-5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain