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ACC 102 · Unit 3 of 6

Cost-Volume-Profit Analysis

Managerial Accounting and Control

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Learning objectives

After completing this unit, you will be able to:

  • Apply frameworks from \
  • Apply the frameworks in "Cost-Volume-Profit Analysis" to a real management decision
  • Make progress on your Managerial Accounting and Control portfolio artifact applied project

Why this matters

Cost-Volume-Profit Analysis is essential to Managerial Accounting and Control. Lessons build fluency with anchor-company examples, worked problems, and assessments on the unit page.

Lesson

Unit overview

Complete all 5 lessons in order. Each lesson follows the program authoring standard: conceptual prose, worked examples, practice problems, and managerial judgment prompts. Finish unit exercises and the knowledge check before marking the unit complete.

Connection to applied work

This unit feeds directly into Managerial Accounting and Control portfolio artifact. As you read, capture notes, examples, and data you can reuse in that deliverable. Strong students finish each unit with a draft section of their project, not just highlights.

Practice

  1. Write a one-page summary of this unit in your own words without looking at the lesson.
  2. Find a real company example (public filing, news article, or personal experience) that illustrates the main concept.
  3. Draft one paragraph recommending an action a manager should take based on this unit.
  4. Add at least three terms from this unit to your course glossary.

Knowledge check

Answer these without notes before marking the unit complete:

  1. What is the central idea of "Cost-Volume-Profit Analysis"?
  2. What mistake do beginners most often make when applying this material?
  3. How does this unit help you complete Managerial Accounting and Control portfolio artifact?
  4. What is one decision you face this month where this unit applies?

Key takeaways

  • Apply frameworks from \
  • Business concepts only matter when they change a decision.
  • Your ACC 102 assessment (Cost concepts, budgeting, variance analysis, and decision-relevant costing for managers.) rewards applied understanding, not memorization.

Unit assessment

Complete each section below. Score 80%+ on the quiz to finish this unit's assessment.

40% applied project35% knowledge checks25% reflections

Exercises

Apply what you learned in this unit with structured practice.

ExerciseApplied practice: Cost-Volume-Profit Analysis45 min
Complete a focused practice exercise on **Cost-Volume-Profit Analysis**. 1. Choose a real company, product, or situation you know. 2. Apply one core framework from this unit to analyze it. 3. Write your analysis in 300–500 words with a clear recommendation. 4. Cite at least one credible source.

Deliverable

300–500 word analysis document saved to your portfolio under ACC 102.

Rubric

  • • Framework applied correctly (not just named)
  • • Specific evidence from a real example
  • • Clear recommendation with tradeoffs acknowledged
  • • Professional writing with source citation
ExerciseDrill: Cost-Volume-Profit Analysis30 min
Work through the practice problems in the unit lesson without looking at notes. Then check your work against the lesson and write a short reflection: - What you got right - One mistake you caught - One concept to review before the next unit

Deliverable

Problem solutions + 150-word reflection in your ACC 102 workbook.

Rubric

  • • Attempted all practice items before checking answers
  • • Honest reflection on errors
  • • Identifies a specific review action

Model / spreadsheet

Build or extend a spreadsheet model tied to this unit.

ModelSpreadsheet model: Cost-Volume-Profit Analysis60 min
Build a spreadsheet model demonstrating **Cost-Volume-Profit Analysis**. **Requirements:** - Separate Input, Calculation, and Output sections - Label all units ($, %, units) - Include at least one sensitivity or scenario comparison - Add a balance check or reasonableness test Use Google Sheets or Excel. Link the model to your Managerial Accounting and Control portfolio artifact project where applicable.

Deliverable

Spreadsheet file with Inputs / Model / Outputs tabs · One-paragraph summary of key insight from the model · Screenshot or export saved to portfolio

Rubric

  • • Assumptions stated explicitly
  • • Logic is auditable (formulas or steps visible)
  • • Output answers a specific business question
  • • Sensitivity or scenario considered

Knowledge quiz

Check your understanding before marking the unit complete.

1. NorthWind Granola 12oz lists for $4.99 with variable manufacturing cost $2.18 per unit. What is unit contribution margin and CM ratio?

2. Columbus fixed costs are $1.8M per month and Heat & Eat bowl contribution margin is $2.64 per unit ($6.49 price minus $3.85 variable). Approximate break-even units?

3. A $0.30 retail price cut on bowls (variable cost unchanged) without volume lift will:

4. Northwind's high fixed plant base yields operating leverage: a 5% revenue increase on stable CM ratio can produce a 14% operating income increase. If revenue then falls 5% from that peak, operating income typically:

5. Planned mix is 42% granola ($2.81 CM), 35% Heritage Sauce ($2.07 CM), 23% bowls ($2.64 CM). What is weighted-average contribution margin per unit?

6. Columbus ships 750,000 bowls in a month when break-even is 681,818 bowls. What is the margin of safety in units?

7. Columbus wants $200,000 monthly operating income after covering $1.8M fixed costs. Bowl unit CM is $2.64. How many units must ship?

8. James Okoro evaluates a sauce line price increase that adds $0.15 contribution per unit but is forecast to reduce volume 8%. Current volume 680,000 units and CM $2.07. What is the correct CVP test?

Next unit: Planning and Budgeting →