Other Formulas Flashcards
(7 cards)
1
Q
what is the formula for contribution per unit?
A
selling price - total variable cost
2
Q
what is the formula for cost function?
A
total cost = fixed costs + (variable rate * output)
3
Q
what is the formula for absorption cost per unit?
A
direct materials + direct labour + overhead absorbed per unit
4
Q
what is the formula for breakeven sales?
A
fixed costs / contribution margin ratio
5
Q
what is the formula for margin of safety?
A
actual sales - breakeven sales * 100
6
Q
what is the formula for expected value?
A
sum of (outcome * probability)
7
Q
what is the formula for breakeven units?
A
fixed costs / contribution per unit
