Chapter 1-6 formula Flashcards
1
Q
CM per unit
A
Selling price - variable cost P/U
2
Q
CM ratio
A
CM per unit / selling price
3
Q
Breakeven in units
A
Fixed costs / CM per unit
4
Q
Breakeven in sales
A
Fixed costs / CM ratio
5
Q
Units to earn target profit
A
Fixed costs + Target profit before tax / CM per unit
6
Q
sales to earn target profit
A
Total variable/fixed expenses + target net profit
7
Q
Margin of safety
A
Sales - Sales at breakeven
