Acct 526 - UL Lafayette - Final Exam questions and 100% correct answers 2026

Acct 526 - UL Lafayette - Final Exam questions and 100% correct answers 2026 Cost Volume Profit (CVP) Analysis How changes in costs, sales volume, and price affect a company's profit. Break-Even Point The point where total revenue equals total cost Unit Contribution Margin Price - Unit Variable Cost Unit CM Ratio: Unit Contribution Margin / Price Contribution Margin Sales - Variable Cost Operating Income Sales - Total Expenses Expanded: Sales - Total Variable Costs - Total Fixed Costs Break-Even Units Total Fixed Cost / (Price - Variable Cost per Unit) Variable Cost Ratio Variable Cost Per Unit / Price Can also be as total: Total Variable Cost / Price Contribution Margin Ratio Total Contribution Margin / Sales Or by unit: Unit Contribution Margin / Price Break-Even Sales Total Fixed Costs / Contribution Margin Ratio And CM Ratio: Total Contribution Margin / Sales Target Income AKA Point in Sales Equation (Total Fixed Cost + Target Income) / Contribution Margin Ratio (Target Income / Unit Contribution Margin) + Break-Even Volume Units for Income Change in Operating Income Unit Contribution Margin * Change in Units Sold Sales Dollars to Earn Target Income (Total Fixed Cost + Target Income) / Contribution Margin Ratio Assumptions of Cost-Volume-Profit Analysis 1) There are identifiable linear revenue and linear cost functions that remain constant over the relevant range.