Conceptual objectives:

1. Describe different types of cost behavior in relation to production and sales volume.
2. Describe several applications of cost-volume-profit analysis.

Analytical objectives:

1. Compute the contribution margin and describe what it reveals about a company’s cost structure.
2. Analyze changes in sales using the degree of operating leverage.

Procedural objectives:

1. Determine cost estimates using the scatter diagram, high-low, and regression methods of estimating costs.
2. Compute the break-even point for a single product company.
3. Graph costs and sales for a single product company.
4. Compute the break-even point for a multiproduct company.