ACC 310-W1 - Assignment-CVP Analysis and Price Changes.DOCX

ACC 310-W1 - Assignment-CVP Analysis and Price Changes

CVP Analysis and Price Changes”

Theresa M. Odom

ACC 310

Instructor Ivan Makarov

April 28, 2014


 

CVP Analysis and Price Changes

3-36. CVP Analysis and Price Changes

Argentina Partners is concerned about the possible effects of inflation on its operations. Presently, the company sells 60,000 units for $30 per unit. The variable production costs are $15, and fixed costs amount to $700,000. Production engineers have advised management that they expect unit labor costs to rise by 15 percent and unit materials costs to rise by 10 percent in the coming year. Of the $15 variable costs, 50 percent are from labor and 25 percent are from materials. Variable overhead costs ar
Powered by