Cost-Volume-Profit Analysis
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Target net income is the income objective for individual product lines.
The following equation is used to determine target net income sales:
Required sales= Fixed cost + variable cost + target net income
Classification of Cost
Cost Volume Profit
Graphic Presentation
Key Relationships
Variable Cost
Fixed Cost
Marginal Cost
Relevant Range
Basic Components
CVP Income Statement
How to Graph CVP
Image of CVP Graph
Break Even Point
Margin of Safety
Target Net Income