In 6062, use Figure 3.32 to calculate the derivative.k(2) if k(x)=(f(x))1

Lecture 13: February 23, 2016 Chapter 7: Cost Volume Profit Analysis Cost-Volume-Profit Analysis  The analytical technique used by managerial accountants to address these types of questions. o What effect on profit can United Airlines expect if it adds an additional flight on the Chicago to New York route o How will NBCs profit change if its ratings increase for its evening news program  It provides management within comprehensive overview of the effects on cost revenue.  Key Assumptions of CVP Analysis: o The behavior of total revenue is linear. This implies that the price of the product or service will not change as sales volume varies within the relevant range. o The behavior of total expenses is linear over the relevant range. This implies the following more specific assumptions:  Expenses can be categorized as fixed, variable, or semi-variable. Total fixed expenses remain constant as activity changes, and the unit variable expenses remains unchanged as activity varies.  The efficiency and productivity of the production process and workers remain constant. o In multiproduct organizations, the sales mix remains constant over the relevant range. o In manufacturing firms, the inventory levels at the beginning and end