Cost/volume/profit analysis
Free IMA CMA Part 2 (Strategic Financial Management) lesson in Business Decision Analysis. 16 min read, ~2,437 words.
CVP examines how total revenue, total cost, and operating income shift when selling price, variable cost per unit, fixed cost, or volume changes (one variable at a time). Contribution margin (CM) = Price − Variable cost per unit. CM ratio = CM / Price. Operating income = (CM per unit...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 2C1
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