Chp 6 Formulas Cvp To Use

Question 0

Contribution margin

Answer 0

SP - VC

Question 1

Operating income before tax

Answer 1

SPx - VCx - FC

Question 2

Contribution margin ratio

Answer 2

CM/ SP

Question 3

Break even in units using CM

Answer 3

FC / CM

Question 4

Break even in dollars using CM

Answer 4

FC / CM ratio

Question 5

Break even in units using CM

Answer 5

FC / CM

Question 6

Break even in dollars using CM

Answer 6

FC / CM ratio

Question 7

Break even in units using math

Answer 7

SPx = VCx + FC + oi (0)

Question 8

Unit sales needed to reach target operating income before tax

Answer 8

FC + P / CM

Question 9

Sales in dollars needed to reach target operating income before tax

Answer 9

FC + P / CM ratio

Question 10

How do you calculate the margin if safety in dollars?

Answer 10

Actual( expected sales) - break even sales

Question 11

Margin if safety ratio

Answer 11

Margin of safety in $ / actual (expected) sales

Question 12

How do you calculate the margin if safety in dollars?

Answer 12

Actual( expected sales) - break even sales

Question 13

Margin if safety ratio

Answer 13

Margin of safety in $ / actual (expected) sales