Unit 1: Cost-Volume-Profit Analysis Economics Worksheet With Answers - Cma311s Notes, 2010 Page 26
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27Contribution ratio
0,30
0,10
0,067
0,10
A
A + B
A + B + C
N$
N$
N$
N$
Sales
0
100 000
200 000
800 000
Net income
(50 000)
(20 000)
10 000
30 000
Contribution graph (Profit-volume chart):
Profit-volume graph (P/V chart):
Net income N$’000
Profit area
30
Product C
20
10
0
100
200
300
400
500
600
700
800
-10
Product B
Volume (sales) units ‘000
-20
Break-even point (N$500 000)
-30
Product A
Loss area
-40
-50
Fixed costs
10.2
Break-even sales = Fixed costs ÷ Marginal income ratio
= N$50 000 ÷ 0,10
= N$500 000
26
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