Cost-Volume-Profit Analysis Flashcards
1
Q
Contribution Margin per Unit
A
USP-UVC
2
Q
Contribution Margin Ratio
A
CMPU / USP
3
Q
Volume at a Profit
A
(TFC + Target Earnings Before Tax) / CMPU
4
Q
Margin of Safety
A
Total/Expected Sales - Breakeven Point
5
Q
Cost-Volume-Profit Formula
A
Sales Revenue (Total Variable Cost) = CONTRIBUTION MARGIN (Total Fixed Cost) = EARNINGS BEFORE INCOME TAX (Income Tax) = NET INCOME
6
Q
Total Cost Formula
A
UVC*Qty + TFC
7
Q
Breakeven Point
A
in units; Total Fixed Cost/ Contribution Margin per Unit
