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June 19, 2022

Managerial Accounting – Product Profitability

Accounting, APA, University

10172This week we covered Chapter 5, Cost-Volume-Profit Analysis and Chapter 6, Variable Costing for Management Analysis. Cost-Volume-Profit Analysis is about formulas and ratios used to determine the profitability of individual products and/or operations. Variable Costing is a way to calculate profitability of a firm’s operations by either calculating the contribution margin or gross profit. Still using the company from your Week 1, please discuss how the contribution margin might be used to determine the profitability of that product and how it’s used to make the operations more profitable.

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