Marginal Costing/break Even Flashcards
(4 cards)
1
Q
How is profit calculated
A
Contribution-fixed cost
2
Q
How is the BEP calculated
A
Fixed cost/contribution per unit
3
Q
What is the margin of safety formula
A
Actual production-BEP
4
Q
What is the formula for margin of safety as a %
A
Margin of safety/actual production x 100