Escolar Documentos
Profissional Documentos
Cultura Documentos
Submitted to:
Prof. Suveera Gill
Presented By:
Ishan Goyal
Nishant Goyal
Tushar Singhal
Amikav Kothiala
Lalit Sondhi
Index
Introduction to case
Keywords
Cost Volume Profit Concepts
CVP and Break-even Analysis
Case discussions
References
Keywords
Contribution Margin
Contribution Margin Ratio
Break-even point
Profit Equation
$1,50,000
$1,00,000
Packaging and
Transportations of
photographs from other
museums and collectors
$5,000
Event Insurance
$4,000
$15,000
$13,000
Guard Service
$12,000
Installation Cost
$2,000
Advertising
$70,000
Estimated
Exhibition
Attendance
Printed
is 10,000
Programs
and admission
$4,000 to exhibit
162000
is $15.
An admission of $6 is charged to enter the museum.
Profit(Loss)
6
$12,000
1
0
Gist:
Rothmueller Museum is planning an Ansel
Adams
exhibit.
Alice
Morgan,
the
photographic curator, wants to estimate its
financial impact.
It links C-V-P analysis and decision making.
Cost Volume
Concepts:
It
enables managers to
operating activity levels.
Profit(CVP)
plan
prospective
emphasis on,
sales
losses,
8
Contribution Margin =
SP
10
SP VC
11
CVP and
(cntd.)
Break-even
Analysis:
0+
13
But lets have a closer look at additional facts: the museum obtains additional revenue because of the
Profit(Loss)
$12,000.(1)
Additional
Revenue
$6
8000*
$48,000.(2)
Revised Profit
$36,000.(3)
of additional profits.
16
Therefore,
17
Profit Equation:
Profit + TFC
SP(N) VC(N)
, N is no. of attendants
Minimum
19
References:
Managerial
21
Thank You
22