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MGT402 - Cost & Management Accounting GDB No. 01 Solution and Discussion Spring 2013 Due Date Jul 09, 2013

Graded Discussion Board

COST AND MANAGEMENT Accounting (MGT402)

Dear Students,

This is to inform that Graded Discussion Board (GDB) No. 01 will be opened on 5th July, 2013 for discussion and last date of discussion is 9 July, 2013.
                             Topic/area for discussion: Cost - Volume - Profit Analysis

This Graded Discussion Board will cover first 36 lessons.

Note:

For acquiring the relevant knowledge, do not rely only on handouts but watch the course video lectures and read additional material available online or in any other mode.

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Replies to This Discussion

Contribution margin = Sales - Variable cost

leather bags

Contribution margin = 300 - 130 = 170

Contribution margin Ratio with Sales = 170/300*100 = 56.666%

clutches

Contribution margin=190-110=80

Contribution margin Ratio with Sales=80/190*100=42.10%

butt sb agr kr lia hai tu share b kr do ap??

it is the exact solution

sir ye to 1st part ha mera ans b yai ha . next kysy hoga plz guide us

Companies prefer to sell products that produce the highest contribution to profit. However, there are a number of terms that describe profit. We can calculate at a company's profit margin ratio by comparing the amount of profit to sales revenue. Profit margin tells us how much out of every sales dollar contributes to the profit of a company. It represents the profit left after both fixed and variable costs have been deducted. The contribution margin ratio tells us how much of every sales dollar is available to cover fixed costs and to go towards profit. Because we know the amount of fixed costs that need to be covered, and because total fixed costs will remain the same regardless of the level of sales even if the product is eliminated, we can use contribution margin concept to compare the profitability of products.

i think it is helpful to you all.

faizan bhai share kro solution

Dear Faizan,, pls upload the solution ... Jazzak ALLAH :)

hassnain opr se thora read karo to pta chul jaye ga k kya answer he 

more profitable is product is lather bag am i right?

How can we determine it?

thanks

What is more profitable high contribution margin ratio or low?

 

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