Formulas Only

Question 0

Contribution margin

Answer 0

SP - VC=CM

Question 1

Operating income (before tax)

Answer 1

Spx - VCx - FC= Profit

Question 2

Contribution margin ratio

Answer 2

CM / SP

Question 3

Break even in units

Answer 3

FC / CM

Question 4

Break even in sales dollars

Answer 4

FC / CM ratio

Question 5

Break even math

Answer 5

SPx= VCx - FC Solve for x = units

Units x SP in units= BE in $

Question 6

Target operating income before tax in units using CM

Answer 6

FC + P / CM

Question 7

Target operating income before tax in dollars using CM

Answer 7

FC + P / CM ratio $

Question 8

Target operating income before tax using math

Answer 8

VCx + FC + target operating income
Solve for x = units

SP x = VC x + FC
?

Question 9

Margin of safety in $

Answer 9

Actual (expected ) sales - break even sales

Question 10

Margin if safety %

Answer 10

Margin of safety in $ / actual (expected) sales

X 100?

Question 11

Sales mix

Answer 11

Units for product 1 / total units =%

Units for product 2 / total units =%

Question 12

Sales mix CM

Answer 12

Unit data.        Prod 1.   Prod 2
SP.                 $500.       $1,000
VC                    300.          500
CM                  $200.        $500
                Sell.     %.               %

Question 13

Unit CM using weighted average

Answer 13

(Unit CM x sales mix %) + (unit CM x sales mix %)

Question 14

Break even point using weighted average

Answer 14

FC / weighted av unit CM = BE in units

Step 2: break even units x % = units

CM for prid 1 x units =$

Do for all products
Then add the two $ amounts together = FC or total CM

Question 15

Degree of Operating leverage

Answer 15

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