This week has focused on using several cost analysis tools to determine how well products contribute to a company’s profitability. However, all of these tools are internally used and not required to be published outside of an organization. Instead, external stakeholders rely on the three key financial statements reviewed in Unit 1: Income Statement Balance Sheet Statement of Cash Flows)
If a company’s CVP analyses showed it was not operating at break-even, where on the financial statements might one be able to see this impact (i. e., specific line items on the statements)?