Lesson 15-1 Cost Characteristics That Influence Decisions

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Presentation transcript:

Lesson 15-1 Cost Characteristics That Influence Decisions 7/31/2019 LESSON 15-1 Cost Characteristics That Influence Decisions RED

ABBREVIATED INCOME STATEMENT Lesson 15-1 7/31/2019 ABBREVIATED INCOME STATEMENT page 445 LESSON 15-1 RED

CALCULATING COST OF MERCHANDISE SOLD UNIT COST Lesson 15-1 7/31/2019 CALCULATING COST OF MERCHANDISE SOLD UNIT COST page 445 Cost of Merchandise Sold Total Cost ÷ Units Sold = $118,800.00 ÷ 36,000 = $3.30 LESSON 15-1 RED

VARIABLE COST CHARACTERISTICS Lesson 15-1 7/31/2019 VARIABLE COST CHARACTERISTICS page 446 LESSON 15-1 RED

Lesson 15-1 7/31/2019 FIXED COSTS page 446 LESSON 15-1 RED

GROSS PROFIT INCOME STATEMENT Lesson 15-1 7/31/2019 GROSS PROFIT INCOME STATEMENT page 447 LESSON 15-1 RED

CONTRIBUTION MARGIN INCOME STATEMENT Lesson 15-1 7/31/2019 CONTRIBUTION MARGIN INCOME STATEMENT page 447 LESSON 15-1 RED

CONTRIBUTION MARGIN PER UNIT Lesson 15-1 7/31/2019 CONTRIBUTION MARGIN PER UNIT page 448 Total Contribution Margin ÷ Units Sold = Contribution Margin per Unit $27,000.00 ÷ 36,000 = $0.75 LESSON 15-1 RED

TERMS REVIEW total costs unit cost variable costs fixed costs page 450 total costs unit cost variable costs fixed costs contribution margin LESSON 15-1