Volume Profit

These Q & A threads in this discussion forum represent asynchronous “in class” time together. Discuss a concept, or problem in chapter 18 that you struggled with or could relate to on some level.  If your question relates to an Assignment question, state the complete question number in the text (e.g., Problem 18-5A) and thread. Show what you did on that question (the wrong answer).  You may also post an “Aha”, moment when a concept in Chapter 18 clicked in your mind and made sense.  Simply stating that you watched a video online will not suffice.

Your Assignment

Your post should be written in proper English.

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It should be at least one paragraph long consisting of at least four well-constructed sentences and include your name in the post at the beginning.  The post should not simply be a repeat of the book, but your own thoughts regarding the matter and be of academic substance.  It should also not be the same post as of any of your fellow students.  YOU MAY NOT POST THE CORRECT ANSWERS BY COPYING THEM FROM WILEY PLUS or POST COMPLETE ANSWERS.  HINTS AND SUGGESTIONS ARE ACCEPTABLE.


Kevin Erdkamp

This chapter made complete sense until I read about the margin of safety. At first it did not make sense to me that you could have actual or expected sales.  Then it dawned on me that the actual sales were a calculation for events that have already occurred and the estimated is for events in the future.  The Margin of Safety Ratio was easy to compute after I understood how to calculate the margin of safety in dollars.

Due Dates

Your first post is due by Friday, March 11 at 11:59 p.m. and is worth 5 points in order to receive credit.

Your second and third posts will be responses to a fellow students’ post and are worth 2.5 points each.  To receive credit, you must reply to other students who do not have more than two reply posts. Your responses shall be by Monday, March 21, at 11:59 p.m. and should be the same criteria as above.  Use proper netiquette.

Sample response:

Prince Petty-Bowie:

The Rolling Stone Concerts mentioned in the Service Company Insight helped me with that concept Kevin.  The guaranteed payments of 1.2 million dollars to the stones was considered a fix cost.  Before I read that I would have never considered those payments as fixed costs.  This stuff can be tricky sometimes, but I see how you need that amount to calculate a break-even point.