Planning, Control and Analysis

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

6908

Card Set

Planning, Control and Analysis

Description

Planning, Control and Analysis

Updated

2010-02-14T22:56:58Z

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