Equations Flashcards
(12 cards)
Breakeven point
Fixed costs / contribution per unit
Breakeven sales revenue
Fixed costs / C/S ratio
Output required for target profit
Fixed costs + Target profit / unit contribution
Margin of safety
Budgeted level of activity - breakeven level of activity
Margin of safety (%)
Budgeted level of activity - breakeven level of activity / budgeted level of activity X 100
C/S ratio
Contribution / sales
Sales revenue to earn a required profit
Required profit + fixed costs / C/S ratio
Weighted average C/S ratio
Total contribution / total revenue
Throughout
Sales revenue - direct material cost
Throughout per factory hour
Throughout per unit / products time on the bottleneck
Cost per factory hour
Total factory costs / total bottleneck resource time available
TPAR
Return per factory hour / cost per factory hour
