5D Flashcards
Breakeven Sales Dollars
Fixed Cost / ((Price - VC/Price))……..Price-vc/price is CM
Break Even Units
FC / (Price - VC)
Contribution Margin
(Price - VC / Price)
Number of units required to generate X profit
(Fixed Cost + Net Income) / (Price - VC)
Number of sales required to generate X profit
(Fixed cost + Net Income ) / ((Price - VC)/Price))
Regression analysis
y=mx + b
Margin of Safety
Current sales (or budgeted sales) Break Even Sales
Total Cost Savings
Total Savings - Investment
Expected Value
Sales * Probability
Cash Flow Cycle
Age of Inventory + Age of AR - Age of AP
Achieve X% return on sales
Sales - FC - VC = NI
NI will be the X% … Sales will be the same variable as NI
Selling Price Variance
Quantity Sold x (Sell Price - Estimated Price)
Opportunity Cost
Amount lost
Ending Inventory
Production Cost + Beginning Inventory - COGS
Calculate Purchase
Sales + Desired Ending Inventory - Beg Inventory