# Jaguar Annual Report

Topics: Variable cost, Costs, Fixed cost Pages: 33 (6925 words) Published: May 24, 2013
CHAPTER 5
Cost-Volume-Profit
ASSIGNMENT CLASSIFICATION TABLE
Study Objectives 1. 2. 3. 4. 5. Distinguish between variable and fixed costs. Explain the significance of the relevant range. Explain the concept of mixed costs. List the five components of cost-volume-profit analysis. Indicate what contribution margin is and how it can be expressed. Identify the three ways to determine the break-even point. Give the formulas for determining sales required to earn target net income. Define margin of safety, and give the formulas for computing it. Questions 1, 2, 3, 6 4, 5 6, 7, 8 9 10, 11, 17 5, 6 Brief Exercises 1 2 1, 3, 4 Exercises 1, 2, 3, 4, 5 1 2, 3, 4, 5, 6 7 6, 7, 8, 9, 10, 13 6, 7, 8, 9, 10, 11, 12 11, 13 1A, 2A, 3A, 1B, 2B, 3B, 4A, 5A 4B, 5B 1A, 2A, 3A, 1B, 2B, 3B, 4A, 5A 4B, 5B 3A, 4A 3B, 4B 1A 1B A Problems 1A B Problems 1B

6.

12, 13, 14

7, 8

7.

16

9, 10

8.

15

11

12

3A, 4A, 5A

3B, 4B, 5B

For Instructor Use Only

5-1

ASSIGNMENT CHARACTERISTICS TABLE
Problem Number 1A 2A 3A Description Determine variable and fixed costs, compute break-even point, prepare a CVP graph, and determine net income. Compute break-even point under alternative courses of action. Prepare a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio, and sales for target net income. Compute contribution margin, fixed costs, break-even point, sales for target net income, and margin of safety ratio. Compute break-even point and margin of safety ratio, and prepare CVP income statement before and after changes in business environment. Determine variable and fixed costs, compute break-even point, prepare a CVP graph, and determine net income. Compute break-even point under alternative courses of action. Prepare a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio, and sales for target net income. Compute contribution margin, fixed costs, break-even point, sales for target net income, and margin of safety ratio. Compute break-even point and margin of safety ratio, and prepare CVP income statement before and after changes in business environment. Difficulty Level Simple Simple Moderate Time Allotted (min.) 20–30 20–30 30–40

4A

Moderate

20–30

5A

Moderate

20–30

1B 2B 3B

Simple Simple Moderate

20–30 20–30 30–40

4B

Moderate

20–30

5B

Moderate

20–30

For Instructor Use Only

5-2

BLOOM’S TAXONOMY TABLE

© 2008 For Instructor Use Only
5-3
* 1. * 2. * 3. * 4. * 5. * 6. * 7. * 8.

Correlation Chart between Bloom’s Taxonomy, Study Objectives and End-of-Chapter Exercises and Problems Study Objective Distinguish between variable and fixed costs. Knowledge Comprehension E5-4 Q5-1 Q5-2 Q5-3 Q5-6 Q5-4 Q5-5 Q5-6 Q5-7 BE5-1 Q5-9 Q5-10 Q5-11 Q5-17 BE5-5 BE5-6 E5-6 E5-7 Q5-13 BE5-7 BE5-8 E5-6 E5-7 Q5-16 BE5-9 BE5-10 Q5-15 BE5-11 E5-8 BE5-5 E5-9 P5-1A E5-10 P5-3A P5-1B P5-3B E5-8 E5-9 E5-10 E5-11 E5-12 P5-1A P5-3A P5-1B P5-3B P5-2A P5-2B P5-4A P5-5A P5-4B P5-5B P5-2A P5-4A P5-2B P5-4B P5-5A P5-4A P5-4B P5-4A P5-4B P5-5A P5-5B Managerial Analysis Ethics Case All About You P5-5B E5-1 Application Analysis E5-5 P5-1A P5-1B BE5-2 E5-3 E5-5 P5-1A P5-1B Synthesis Evaluation

BE5-1 E5-3 E5-1 E5-4 E5-1 Q5-8 BE5-3 BE5-4

Explain the significance of the relevant range. Explain the concept of mixed costs. E5-4 E5-5 List the five components of cost-volume-profit analysis. Indicate what contribution margin is and how it can be expressed. E5-7

Identify the three ways to determine the break-even point.

Q5-12 Q5-14

Give the formulas for determining sales required to earn target net income. Define margin of safety, and give the formulas for computing it.

E5-11 P5-3A E5-13 P5-3B E5-12 P5-3A P5-3B

Communication Real-World Focus Decision Making Exploring the Web Across the Organization

1. (a) Cost behavior...