Accounting 2 - chapter 8 - quick formulas

0.0(0)
Studied by 0 people
call kaiCall Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/8

flashcard set

Earn XP

Description and Tags

formulas

Last updated 9:03 PM on 10/7/26
Name
Mastery
Learn
Test
Matching
Spaced
Call with Kai
Chat

No analytics yet

Send a link to your students to track their progress

9 Terms

1
New cards

Contribution Margin per Unit =

Unit sales price - Variable cost per unit or

Total Contribution margin / Number of units sold

2
New cards

Contribution Margin Ratio =

Unit Contribution Margin / Unit Sales Price or

Total Contribution Margin / Total Sales Revenue

3
New cards

Break-Even Units =

Total Fixed Costs / Unit Contribution Margin

4
New cards

Break-Even Sales Revenue =

Break-even units x Unit Sales price or

Total Fixed Costs / Contribution Margin Ratio

5
New cards

Target Units =

(Total Fixed Costs + Target Profit) / Unit Contribution Margin

6
New cards

Target Sales Revenue =

Target Units x Unit Sales price or

(Total Fixed Costs + Target Profit) / Contribution Margin Ratio

7
New cards

Margin of Safety =

Actual or Budgeted Sales - Break-even sales

8
New cards

Margin of Safety Percentage =

Actual or Budgeted Sales - Break-even sales / Actual or Budgeted Sales

9
New cards

Degree of Operating Leverage =

Contribution Margin / Net Operating Income