6 - CVP Flashcards
1
Q
CVP Income Statement
A
Sales
(VC)
=CM
(FC)
=OI
2
Q
Straight line amortization
A
(Cost - SV)/useful life
3
Q
CMu
A
CMu = SPu - VCu
CMu = Total CM / Total units sold
4
Q
CMr
A
CMr = SPu / SP
CMr = Total CM / Total sales $
5
Q
BEu
A
FC/CMu
6
Q
BE$
A
FC/CMr
7
Q
Target Sales units
A
(FC+net income before tax)/CMu
8
Q
Target Sales $
A
(FC+net income before tax)/CMr
9
Q
Margin of safety units
A
units sold - BEu
10
Q
Margin of safety dollars
A
(sales $ - BE$)
11
Q
Margin of safety ratio
A
(sales $ - BE$)/sales $
12
Q
Degree of operating leverage
A
DOL = total CM / OI
13
Q
increase/decrease in OI
A
DOL * % change in sales
14
Q
weighted average CM
A
(SM1 * CMu) + (SM2 * CMu2) + (SM3 * CMu3)
15
Q
A
