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ACCT 2: Ch. 5 + Ch.6 Formulas

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  1. Sales - Variable Expenses=
    Contribution Margin
  2. Contribution Margin - Fixed Expenses=
    Net Operating Income
  3. Selling Price x Quantity=
    Sales
  4. Variable Expense per Unit x Quantity=
    Variable Expense
  5. Selling Price - Variable Expense per Unit=
    Contribution Margin per Unit
  6. Contribution Margin per Unit x Quantity=
    Contribution Margin
  7. Contribution Margin / Quantity
    Contribution Margin per Unit
  8. Contribution Margin per Unit / Selling Price=
    Contribution Margin Ratio
  9. Contribution Margin per Unit x Quantity / Selling Price x Quantity=
    Contribution Margin Ratio
  10. Contribution Margin Ratio x Sales=
    Contribution Margin
  11. Contribution Margin / Sales=
    Contribution Margin Ratio
  12. Contribution Margin Ratio + Variable Expense Ratio=
    1
  13. Sales - Variable Expense - Fixed Expense=
    Profit
  14. Contribution Margin - Fixed Expense=
    Profit
  15. Contribution Margin per Unit x Quantity - Fixed Expense=
    Profit
  16. Contribution Margin Ratio x Sales - Fixed Expense=
    Profit
  17. Selling Price x Quantity - Variable Expense per Unit x Quantity=
    Profit
  18. Contribution Margin per Unit x Quantity=
    Contribution Margin
  19. Fixed Expense / Contribution Margin per Unit=
    Break Even Sales in Units
  20. Fixed Expense / Contribution Margin Ratio=
    Break Even Sales in Dollars
  21. Fixed Expense + Target Profit / Contribution Margin per Unit=
    Target Profit Sales in Units
  22. Fixed Expense + Target Profit / Contribution Margin Ratio=
    Target Profit Sales in Dollars
  23. Total Sales - Break Even Sales=
    Margin of Safety
  24. Margin of Safety / Sales=
    Margin of Safety Percentage
  25. Contribution Margin / Net Operating Income=
    Degree of Operating Leverage
  26. Degree of Operating Leverage x % Change in Sales=
    % Change of Net Operating Income
  27. Change in Sales x Contribution Margin Ratio=
    Change in Profit
Author
hunter82
ID
309645
Card Set
ACCT 2: Ch. 5 + Ch.6 Formulas
Description
Review of formulas for ACCT 2 Ch. 5 + Ch. 6 Test.
Updated
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