- This topic has 2 replies, 2 voices, and was last updated 1 year ago by .
Viewing 3 posts - 1 through 3 (of 3 total)
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › CVP analysis
C/S ration Shows how much each $ sold actually contributes to fixed costs.
so, If c/s ration of product A = 0.4 and B= 0.25 and combined is 0.34375.
how would you interpret them,
because Clearly , the C/S ratio if multiplied by 100 , it shows percent of contribution as sales not percent of fixed cost as sales. to find the fixed cost per $ , It should be subtracted from 1. like Fixed cost for each unit sold of A = 0.6 per usd.
am i right ?
also, please do tell how do you find out the mosts profitable product from c/s ratio.
I understood, I read an ACCA article on same and The wording confused me. When I returned to notes , it’s was there : company can reach breakeven first if It sells highest C/S ratio (most profitable) product first.
That is correct 🙂