B4.M1/2 - Projection and Forecasting Techniques 1/2 Flashcards
(5 cards)
1
Q
What is the formula for Contribution Margin?
A
Sales - Variable Costs
2
Q
What is the formula for Contribution Margin Ratio?
A
(Sales - Variable Costs) / Sales
3
Q
What is the formula for Breakeven Point in Units?
A
Total Fixed Cost / Contribution Margin
4
Q
What is the formula for Breakeven Point in Dollars?
A
Total Fixed Costs / Cont. Margin Ratio
5
Q
What is the formula for Breakeven Point in Units for a Target Profit?
A
Total Fixed Cost + Pretax Profit / Contribution Margin per Unit
