Breakeven Analysis Flashcards
1
Q
Contribution Margin
A
Sales minus Variable Costs
2
Q
Contribution Margin Ratio
A
(Sales minus Variable Costs)/Sales
3
Q
Breakeven point in units formula
A
Total Fixed Costs/contribution margin per unit
4
Q
Break Even point in dollars
A
Unit Price X breakeven point in units (or Total Fixed Costs/contribution margin per unit)
5
Q
Breakeven point in dollar (contribution margin approach)
A
Total Fixed Costs/Contribution margin ratio (or Sales minus Variable costs/Sales)
