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(CVP)
Operating Leverage
營業槓桿
• Operating leverage describes the effects that fixed
costs have on changes in operating income as changes
occur in units sold and , hence, in contribution margin.
Contribution margin
=
Operating income
EXERCISE
Carlisle Company currently sells 400,000 bottles of perfume
each year. Each bottle costs $0.84 to produce and sells for
$1.00. Fixed costs are $28,000 per year. What is DOL for
Carlisle Company?
Do-All’s Superword’s
units units
contribution contribution
Weighted-average × sold + × sold
margin per unit margin per unit
contribution =
margin per unit Total units sold
The breakeven point is 120,000 Standard units plus 40,000 Deluxe units, a
total of 160,000 units.
Contribution Margin vs. Gross Margin
Fixed
Contribution Fixed
Sales marketing and
Operating income = margin per × - manufacturing -
quantity distribution
unit costs
costs
= ($3.50 × 230,000) − $500,000 − $350,000
= -$45,000
Contribution Margin vs. Gross Margin
Exercise 3-43
2. Breakeven point Fixed manufacturing, marketing and distribution costs
in units =
Contribution margin per unit
Cost Tracing
Direct Costs
成本追溯
Cost
Cost Assignment
Object
成本分攤
Indirect Costs
Cost Allocation
Cost-allocation base
a cost driver is used as a basis upon which to build a
systematic method of distributing indirect costs (number of
machine-hours, direct labor)
Actual
Actual manufacturing overhead costs
manufacturing =
overhead rate Actual direct manufacturing labor costs
=1,862,000 / 980,000 = 1.9
Seven-step Job Costing
Exercise 4-17
2. Costs of Job 626 under actual and normal costing follow:
Underallocated
Actual manufacturing Manufacturing
manufacturing = - overhead allocated
overhead costs
overhead