Managerial Accounting: CVP Analysis Formulas and Break-Even Calculations

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

1/9

encourage image

There's no tags or description

Looks like no tags are added yet.

10 Terms

1
New cards

Total contribution margin

Sales − total variable expenses

2
New cards

Contribution margin per unit

Selling price per unit − variable cost per unit

3
New cards

Contribution margin ratio

Contribution margin ÷ sales

4
New cards

Net operating income

Contribution margin − fixed expenses

5
New cards

Break even units

Fixed expenses ÷ contribution margin per unit

6
New cards

Break even sales dollars

Fixed expenses ÷ contribution margin ratio

7
New cards

Units for a target profit

(Fixed expenses + target NOI) ÷ CM per unit

8
New cards

Margin of safety

Actual or budgeted sales − break even sales

9
New cards

Margin of safety percentage

Margin of safety ÷ actual or budgeted sales

10
New cards

Degree of operating leverage

Total contribution margin ÷ net operating income