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Planning, Control and Analysis
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Formula for
Operating income
Sales - Variable costs - Fixed cotst = Operating income
Formula for
Contribution Margin
Sales - Variable Costs
Breakeven Point
Contribution Marging - Fixed Costs = 0
Breakeven (units)
Breakeven (units) = (Fixed costs) / Contribution margin
A.K.A. = (Fixed costs) / (Sales - Variable costs)
Breakeven (sales)
Breakeven (sales) = Fixed costs / CM ratio
CM ratio = (Sales - Variable costs) / (Sales)
Margin of Safety
The amount of sales you can drop before you hit your breakeven point
Author
Anonymous
ID
6908
Card Set
Planning, Control and Analysis
Description
Planning, Control and Analysis
Updated
2010-02-14T22:56:58Z
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