Cost-Volume-Profit Analysis
ICAN Management Information

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA SKILLS LEVEL EXAMINATION - MANAGEMENT INFORMATION QUESTION: COST-VOLUME-PROFIT ANALYSIS Kenechukwu Manufacturing Limited (KML), located in Aba, Abia…

Aso Rock Foods Plc has a selling price of ₦800 per unit, variable cost of ₦560 per unit, and fixed costs of ₦3,600,000. The company currently sells 20,000 units. What is the margin of safety expressed…

Which of the following statements about Cost-Volume-Profit (CVP) analysis is CORRECT?

Lagos Bottlers Limited produces three products with the following annual data: Product X contributes ₦600,000, Product Y contributes ₦900,000, and Product Z contributes ₦500,000. Total fixed costs are…

Abuja Textiles Plc currently earns a profit of ₦2,800,000. Its P/V ratio is 35% and fixed costs are ₦4,200,000. If the company wishes to increase profit by 50%, by how much must sales revenue increase…

Zenith Manufacturing Limited sells a single product at ₦2,500 per unit. Variable costs are ₦1,500 per unit and total fixed costs are ₦4,000,000 per annum. What is the breakeven point in units?

Port Harcourt Refineries Plc has a breakeven sales revenue of ₦18,000,000 and a P/V ratio of 40%. What are the total fixed costs of the company?

Enugu Coal Mining Company produces two products, Alpha and Beta, in a sales mix ratio of 3:2 respectively. Alpha has a contribution of ₦400 per unit and Beta has a contribution of ₦600 per unit. Total…

Ibadan Breweries Plc is considering a proposal to reduce its selling price by 10% in order to increase sales volume. Currently, the company sells 50,000 units at ₦1,200 per unit with a P/V ratio of 40…

Under CVP analysis, which of the following best describes the 'angle of incidence' in a breakeven chart?

Kano Cement Company Limited sells its product at ₦5,000 per bag. Variable production cost is ₦2,800 per bag, variable selling cost is ₦200 per bag, and total annual fixed costs are ₦22,000,000. The co…