Week 1 Discussion Question 2

Fundamentals of Cost-Volume-Profit Analysis

Complete Question 3-16 and Exercise 3-33. Respond to at least two of your classmates' postings.

Exercise 3-16. 

“I am going to work for a hospital, which is a not-for-profit organization. Because there are no profits, I will not be able to apply any CVP analysis in my work.” Do you agree with this statement? Why or why not?  

  

Exercise 3-33 

a)  How many receivers must Crest sell every month to break even? 

b. How many receivers must Crest sell to earn a monthly operating profit of $90,000 after taxes? 

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