Week 5 – Profit analysis is an analytical technique used primarily

Week 5 – Assignment: Conduct Profit Analysis

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Profit analysis is an analytical technique used primarily to analyze the effects of volume changes on profit. Consider the data in the table below for three independent health services organizations and fill in the missing data indicated by the question marks.

Table 2

Effects of Volume Changes on Profit

 

Revenues

Total Variable Cost

Fixed Cost

Total Cost

Profit

a

$2000

$1400

?

$2000

?

b

?

$1000

?

$1600

$2400

c

$4000

?

$600

?

$400

 

Length: 1 completed template provided in the resources for this week.

Explanation & Answer

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