Accounting 2101 Morgan Final Exam Formulas

Applied OH

Estimated OH x (DM+DL+MOH)

Pre-Determined OH

Est Annual Overhead / est annual operation activity (hours, minutes, etc)

Contribution Margin Ratio

CM/unit selling price

Unit Contribution Margin

unit selling price - VC

TC

FC + VC

MOH applied

Pre determined OH x DL Cost

COGM

(DM + DO + MOH) + BegIn - EndIn

Sales ($)

(FC + Total Net Income) / unit cm margin ratio

Break even ($)

FC/ unit cm ratio

OR

(FC + Total NI) / 1-VC

break even (units)

FC / Unit CM

Margin of Safety ($)

Actual Sales - Break Even ($)

Margin of Safety Ratio

Margin of Safety / actual sales

weighted average contribution margin

(Unit Cm x Sales Mix)

Target Cost

Market Price - desired Profit

Target Ceiling Price

Cost + Markup

Markup

Markup % x Cost

Markup (2)

Desired ROI % x Amt Invested / units produced

Markup %

Roi / units

OR

(Desired ROI / Total Cost) x 100

Min Target Price

VC + Opp Cost (SP - VC)

Target Unit Price

Unit Market Price - Desired Unit Profit

Net Income

Revenue - Expenses(costs)

Present Value of Bond

(Face Value x Present Value of 1) +

Cash Pay Back Period

Cost of investment / net annual Cash Flow

Net Present Value

PV of Cash Flows - Capital Investment

Probability index

PV of net Cash Flows / initial investment

Net Income (additional costs)

Sales - VC = CM - FC = NI