Chapter 7, CVP (Cost-Volume-Profit) Analysis Two versions of the break-even formula: (USP)Q – (UVC)Q – FC = OI (Equation Method) Q = (FC + OI)/UCM (Contribution Margin Method) where: USP = Unit selling price UVC = Unit variable costs UCM = Unit contribution margin FC = Fixed costs Q = Quantity produced AND sold OI = Operating income A straight-forward problem requiring you to know what information to use and what information to ignore: TEB, Inc. sells a product. Actual 2008 and estimated projected 2009 cost information for the product are presented below. Show transcribed image text Chapter 7, CVP (Cost-Volume-Profit) Analysis Two versions of the break-even formula: (USP)Q – (UVC)Q – FC = OI (Equation Method) Q = (FC + OI)/UCM (Contribution Margin Method) where: USP = Unit selling price UVC = Unit variable costs UCM = Unit contribution margin FC = Fixed costs Q = Quantity produced AND sold OI = Operating income A straight-forward problem requiring you to know what information to use and what information to ignore: TEB, Inc. sells a product. Actual 2008 and estimated projected 2009 cost information for the product are presented below.
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