| 7-1 | Compute a break-even point using the contribution-margin approach and the equation approach. |
| 7-2 | Compute the contribution-margin ratio and use it to find the break-even point in sales dollars. |
| 7-3 | Prepare a cost-volume-profit (CVP) graph and explain how it is used. |
| 7-4 | Apply CVP analysis to determine the effect on profit of changes in fixed expenses, variable expenses, sales prices, and sales volume. |
| 7-5 | Compute the break-even point and prepare a profit-volume graph for a multiproduct enterprise. |
| 7-6 | List and discuss the key assumptions of CVP analysis. |
| 7-7 | Prepare and interpret a contribution income statement. |
| 7-8 | Explain the role of cost structure and operating leverage in CVP relationships. |
| 7-9 | Understand the implications of activity-based costing for CVP analysis. |
| 7-10 | Be aware of the effects of advanced manufacturing technology on CVP relationships. |
| 7-11 | Understand the effect of income taxes on CVP analysis (appendix).
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