Breakeven analysis Flashcards
1
Q
Total contribution
A
CPU x sales volume
2
Q
Breakeven point
A
Total fixed cost / contribution per unit
3
Q
Contribution ratio
A
total contribution / total revenue
or
contribution per unit / selling price per unit
4
Q
Revenue generated at the Breakeven point
A
Fixed costs / contribution ratio
5
Q
Margin of safety (units)
A
Budgeted sales volume - breakeven sales volume
6
Q
Margin of safety (%)
A
(Budgeted output - Breakeven output) / Budgeted output
7
Q
Contribution per unit
A
CPU = selling price per unit - selling cost per unit
8
Q
sales volume for a target profit
A
(Fixed costs + target profit) / contribution per unit
9
Q
Limiting factor analysis
A
- calculate contribution per unit for each product
- Calculate contribution per limiting factor each product
- Rank the products in accordance with step 2 findings
- Allocate and detainee optimal plan
10
Q
Make or buy
A
- Calculate cost saving per unit if made internally
- Calculate savings per limiting factor (cost savings / limiting factor)
- rank in accordance with findings in 2.
- Allocate and determine optimal production plan.