1. Calculate the profit per package and the total profitability of each of the three corporate packages. 2. Compare the profitability of the three corporate packages. 3. Do you consider that the allocation of the corporate department overhead to packages using actual sales revenue is appropriate? Can you suggest a better method? 4. Suggest what actions the company could take in regard to the three corporate packages.

Cost-volume-profit (CVP) analysis for revenue planning determines: The desired profit level of a firm. Both revenue maximization and cost minimization. The costs associated with a certain level of revenue. The max amount of revenue a firm can receive. The revenue required to achieve a desired profit level.

Which of the following statements is true? I.   A packaging department is most likely a cost center. II.  In a profit center, the manager is most likely in-charge of investments, revenues and costs. III. The cafeteria in the college is most likely a profit center. IV. A business unit within a business is an example of a revenue center   a. All but II b. I only c. All statements are true d. All but II and III e. I and II only Clear my choice

In determining if two operating segments may be combined into one, which of the following factors should be considered? a. similarities regarding profit margins b. whether the nature of the products and services is similar c. whether there is a similar amount of intracompany sales d. whether there is a similar number of employees

An identifiable part of the company for which financial information is available is called __________.     ANSWER       a business segment   the contribution margin   the gross profit   the profitability analysis   I DON'T KNOW YET

Explain CVP analysis and the information that it can provide to management. How could CVP analysis be used to evaluate whether additional advertising spending would lead to increased profit?