M3 Flashcards

1
Q

What is controllable margin and where is used?

A

Contribution margin (Selling price less cost) less “controllable” fixed cost.

Controllable margin is used in a contribution report, a part of financial score card

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2
Q

BEP in unit

A

BET in unit = total FC / VC in unit

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3
Q

BEP in dollar

A

unit price (sales price) times BEP in unit

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