From the P/V chart for the year ending 31 December 2016, identify what point A 20000 shows.
From the P/V chart for the year ending 31 December 2016, identify what point B($60000) shows.
State what is meant by P/V ratio.
State two benefits and two drawbacks of CVP analysis.
Calculate, for the year ending 31 December 2016, the total contribution for each product.
Calculate, for the year ending 31 December 2016, the total profit or loss for each product.
Discuss whether or not Lin should continue to produce all three products. Justify your answer.
Calculate the contribution made or lost on each order.
Advise Lin whether or not each of the orders should be accepted. Justify your decision.
Explain, giving two reasons, why a business needs to plan for the future.