Breakevene Analysis And Contribution Flashcards
1
Q
How is breakeven point calculated?
A
Total fixed costs/contribution per unit
2
Q
How is contribution ratio calculated?
A
Contribution per unit/ sales price per unit x100%
3
Q
How is Breakdown revenue calculated?
A
Fixed costs/contribution ratio
4
Q
What are the two methods for calculating margin of safety?
A
Budgeted sales - breakeven sales
Budges sales - breakeven sales/ budgeted sales x100
5
Q
How can the breakeven formulae be amended to show sales volume?
A
Sales volume to a achieve target profit = fixed costs + required profit/ contribution per unit
