Single product case
In the following video, I will use the high-low method to estimate the price \(P\), the unit variable cost \(V_c\) and the fixed costs \(FC_p\) from the following, very incomplete, pieces of information:
|Volume (number of Mojitos sold)||1,000||1,500|
|Revenues (in euros)||7,000||10,500|
|Operating Income (in euros)||-1,100||1,100|
Then, I will use this profit equation to build a CVP graph and a contribution income statement for each month.
In the next video, I will follow more or less the same steps but this time on the case we started to build in Chapters 2 and 3. You can download the file on which we worked here.
You can also download the file with the complete solutions of this case.
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