Search
Create
Log in
Sign up
Log in
Sign up
Accounting Exam #1
STUDY
Flashcards
Learn
Write
Spell
Test
PLAY
Match
Gravity
ch 1, 2, 5, 6, 12
Terms in this set (21)
breakeven units formula method
unit sales to break even = fixed expenses/unit CM
breakeven units equation method
profit = unit CM x Q - FE (the profit is 0)
breakeven sales dollars formula method
dollar sales to break even = fixed expenses/CM ratio
breakeven sales dollars equation method
profit = CM ratio x sales - FE
target profit analysis UNITS equation method
profit = unit CM x Q - FE (this time we know the profit)
target profit analysis UNITS formula method
unit sales to attain the target profit = (TP + FE)/unit CM
target profit analysis SALES DOLLARS
dollar sales to attain a target profit = TP + FE / CM RATIO
DOL
CM/NOI
percentage change in net income
degree of operating leverage x percentage change in sales
margin of safety in dollars
total budgeted (or actual) sales - break even sales
margin of safety percentage
margin of safety in dollars/total budgeted or actual sales in dollars
contribution format income statement
profit=(sales-variable expenses)-fixed expenses
profit=(PxQ-CxQ)-FE
profit=unit CM x Q - FE
CM ratio
=contribution margin/sales
0r
= unit CM/unit selling price
or
=1-variable expense ratio
change in contribution margin
CM ratio x change in sales
change in profit
=CM ratio x change in sales - (change in) fixed expenses
variable expense ratio
variable expenses/sales
break even for multiple products
fixed expenses / overall CM ratio
increase in net operating
CM per unit x increase in unit sales
incremental contribution margin
increased sales x CM ratio - increased advertising cost = increase in monthly NOI
dollar sales for company with traceable fixed expenses to break even
traceable fixed expenses + common fixed expenses / overall CM ratio
break even point for a business segment
dollar sales for a segment to break even = segment traceable fixed expenses/segment CM ratio
YOU MIGHT ALSO LIKE...
Financial Management
TextbookMediaPremium
$14.99
STUDY GUIDE
Managerial Chapter 5
24 Terms
jcd14
Chapter 5 Cost-Volume-Profit Relationships
44 Terms
gchan1238
Accounting Final Formulas
18 Terms
ramaekers919
OTHER SETS BY THIS CREATOR
MC People
50 Terms
alexisalbensi
ch 12 13 14 15 16
5 Terms
alexisalbensi
MC FINAL QUESTIONS
46 Terms
alexisalbensi
Mass Comm CH 13, 16, 17
109 Terms
alexisalbensi
THIS SET IS OFTEN IN FOLDERS WITH...
ch 10
20 Terms
EmmyBoo
Chp 10
14 Terms
Kendall_Eisenberg
Accounting 200 -- Chart of accounts
57 Terms
rebeccaroth23
BUAD 280 Ch. 9
27 Terms
esmith96
;