Breakeven Analysis Flashcards
1
Q
Contribution per unit
A
Selling price- variable cost
2
Q
Budgeted profit
A
Total contribution- fixed costs
3
Q
Breakeven point
A
Total fixed costs/contribution per unit
4
Q
Margin of safety
A
(Budgeted sales-breakeven point)/budgeted sales x100%
5
Q
Target profit (units)
A
(Total fixed costs + required profit)/ contribution per unit
6
Q
C/a ratio
A
Total or per unit contribution/ total or per unit sales value
7
Q
Breakeven point (revenue)
A
Fixed costs/ c/s ratio
