Linear Algebra and Calculation of the Margin Rate of Product Safety


  • Ruolin Li



Cost-volume-profit analysis, Theory of activity-based costing, Furniture enterprises, Cost control.


 Based on the existing scholars' theoretical researches on the traditional cost-volume-profit analysis and theory of activity-based costing, this paper introduces the activity-based cost-volume-profit analysis into the actual cases, redivides the cost of M Company on the basis of theory of activity-based costing, and analyzes the break-even point and sensitivity coefficient of the redivided cost. Moreover, the results of the traditional cost-volume-profit analysis are compared with the results of the activity-based cost-volume-profit analysis, in aid of helping M Company find the most critical points that really affect the profit of the enterprise and find the profitability of each product. Furthermore, combined with the actual situation of M Company, this paper puts forward the corresponding cost control countermeasures, and draws the conclusion that the work-based cost-volume profit analysis is more suitable for the current production of the enterprise, which also provides certain reference value for other similar furniture manufacturing enterprises.


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How to Cite

Li, R. (2023). Linear Algebra and Calculation of the Margin Rate of Product Safety. Frontiers in Business, Economics and Management, 7(1), 232–234.