BEC 04 Flashcards
1
Q
How do you find Breakeven in units?
A
total fixed costs/cmu
2
Q
BE in dollars? what is it
A
unit price * be units
3
Q
Target profit in units
A
fixed cost+pretax profit/ contribution margin per unit
4
Q
Target profit in sales
A
FC+pre tax profit/cm ratio
5
Q
Margin of safety
A
total sales-BE in sales
6
Q
%of safety(margin)
A
margin of safety in dollars/total sales
7
Q
target cost
A
market price-required profit
8
Q
The financial budget includes
A
pro forma income statement and all budgets except cash and capital purchases.
9
Q
What is the best method to value a new company?
A
price to sales ratio
10
Q
Imputed interest rate when it comes to the residual income approach
A
historical wacc for the company
