Equations Flashcards Preview

F5 Performance Management > Equations > Flashcards

Flashcards in Equations Deck (12)
Loading flashcards...
1
Q

Breakeven point

A

Fixed costs / contribution per unit

2
Q

Breakeven sales revenue

A

Fixed costs / C/S ratio

3
Q

Output required for target profit

A

Fixed costs + Target profit / unit contribution

4
Q

Margin of safety

A

Budgeted level of activity - breakeven level of activity

5
Q

Margin of safety (%)

A

Budgeted level of activity - breakeven level of activity / budgeted level of activity X 100

6
Q

C/S ratio

A

Contribution / sales

7
Q

Sales revenue to earn a required profit

A

Required profit + fixed costs / C/S ratio

8
Q

Weighted average C/S ratio

A

Total contribution / total revenue

9
Q

Throughout

A

Sales revenue - direct material cost

10
Q

Throughout per factory hour

A

Throughout per unit / products time on the bottleneck

11
Q

Cost per factory hour

A

Total factory costs / total bottleneck resource time available

12
Q

TPAR

A

Return per factory hour / cost per factory hour