EXAM 2 Flashcards by Clay Casassa

Q

CMR FORMULA

A

CM / SALES

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

FORMULA: QUANTITY TO SELL FOR DESIRED PROFIT

A

P = (UNIT CM)(Q) - FIXED

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

FORMULA: MARGIN OF SAFETY

A

(SALES) - [BREAK EVEN OF 0 = (U CM)(Q) - FIXED]

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

FORMULA: MARGIN OF SAFETY PERCENTAGE

A

MARGIN OF SAFETY / SALES

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

FORMULA: DEGREE OF OPERATING LEVERAGE

A

CM / NET OP INC

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

FORMULA: ESTIMATE IMPACT OF NET OP INC CHANGE

A

(DEGREE OF OP LEVERAGE) (% CHANGE)

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

FORMULA: % CHANGE IN NET OP INC

A

(CHANGE IN NET OP INC) / (ORIGINAL NET OP INC)

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

FORMULA: HIGH/LOW VARIABLE COST

A

(COST CHANGE) / (ACTIVITY CHANGE)

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

FORMULA: HIGH/LOW FIXED COST

A

(HIGHEST COST) - [(HIGHEST ACTIVITY) (VARIABLE COST)]

How well did you know this?

1

Not at all

2

3

4

5

Perfectly