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Example 1 On CVP

Case A had revenues of Br 2,000 and total costs of Br 800, resulting in operating income of Br 1,200. Case B had revenues of Br 1,000, variable costs of Br 500 and total costs of Br 1,000, resulting in an operating loss of Br 300. Case C had revenues of Br 1,500, variable costs of Br 300 and total costs of Br 700, resulting in operating income of Br 1,000 and a contribution margin percentage of 40%.

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Tekaling Negash
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43 views

Example 1 On CVP

Case A had revenues of Br 2,000 and total costs of Br 800, resulting in operating income of Br 1,200. Case B had revenues of Br 1,000, variable costs of Br 500 and total costs of Br 1,000, resulting in an operating loss of Br 300. Case C had revenues of Br 1,500, variable costs of Br 300 and total costs of Br 700, resulting in operating income of Br 1,000 and a contribution margin percentage of 40%.

Uploaded by

Tekaling Negash
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Case

Revenues

A
B
C
D

Br 2,000
Br 1,000
Br 1,500

VC
Br 500

FC

TC
Br 800

Br 300
Br 700

OI
Br 1,200
Br 200

CM%

Br 1,000
Br 300

40%

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