Managerial Equations Flashcards
1
Q
Contribution Margin
A
Rev - VC
2
Q
CM per unit
A
(Selling price per unit) - (VC per unit)
3
Q
CM Ratio
A
(Rev - VC) / Rev
4
Q
CM Ratio per unit
A
(CM per unit) / (SP per unit)
5
Q
Required sales in $
A
(Fixed cost + Desired cost) / (CM ratio)
6
Q
Required sales in units
A
(Required sales in $) / (SP per unit)
7
Q
Break even point in units
A
(Fixed cost) / (CM per unit)
8
Q
Break even point in dollars
A
(BE point in units) x (SP per unit)
9
Q
Desired Profit
A
(FC + Profit) / (CM per unit)
10
Q
(COGS) (merchandiser)
A
Beg Inv + Cost of goods purchased - Ending Inv
11
Q
(COGS) (manufacturer)
A
Beg FG inv + COGM - Ending FG inv
12
Q
COGM
A
Beg WIP inv + Total manufacturing costs - Ending WIP inv
13
Q
Financial NI
A
Rev - COGS = Gross margin - SG&A expense
14
Q
Managerial NI
A
Rev - VC = CM - FC
15
Q
COGS
A
Product
