Chapter 6 Flashcards
1
Q
Profit = ?
A
total sales revenue - total variable costs - total fixed costs
2
Q
break even units = ?
A
total fixed costs / unit contribution margin
3
Q
target units = ?
A
(total fixed cost + total profit) / unit contribution margin
4
Q
break even sales = ?
A
total fixed costs / contribution margin ratio
5
Q
target sales = ?
A
(total fixed costs + target profit) / contribution margin ratio
6
Q
margin of safety
A
actual or budgeted sales - break even sales
7
Q
degree of operating leverage = ?
A
contribution margin / net operating income
8
Q
margin of safety percentage = ?
A
(actual or budgeted sales - break even sales) / actual or budget sales
9
Q
degree of operating leverage = ?
A
contribution margin / net operating income
