4. Break–Even and Contribution Margin Analysis: Profit, Cost, and Volume Changes

  1. Jae K. Shim,
  2. Joel G. Siegel and
  3. Allison I. Shim

Published Online: 9 MAR 2012

DOI: 10.1002/9781118387023.ch4

Budgeting Basics and Beyond, Fourth Edition

Budgeting Basics and Beyond, Fourth Edition

How to Cite

Shim, J. K., Siegel, J. G. and Shim, A. I. (2011) Break–Even and Contribution Margin Analysis: Profit, Cost, and Volume Changes, in Budgeting Basics and Beyond, Fourth Edition, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118387023.ch4

Publication History

  1. Published Online: 9 MAR 2012
  2. Published Print: 17 OCT 2011

ISBN Information

Print ISBN: 9781118096277

Online ISBN: 9781118387023

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Keywords:

  • cost–volume–profit analysis;
  • break–even analysis;
  • contribution margin analysis;
  • economic analysis;
  • pricing policy

Summary

This chapter contains sections titled:

  • Questions Answered by Break–Even and Contribution Margin Analysis

  • Applications of the CVP Model

  • Contribution Margin Income Statement

  • Impact of Income Taxes

  • Some Applications of Contribution Margin Analysis and What–If Analysis

  • Sales Mix Analysis

  • CVP Analysis with Step–Function Costs

  • Importance of Identifying Variable and Fixed Costs–CVP–Based Strategies

  • Summary