Cost Volume Profit Analysis Flashcards
1
Q
What is the formula for breakeven points in units?
A
Fixed cost/Contribution per unit
1
Q
What is the formula for level of activity to earn a required profit?
A
Required profit + Fixed costs/Contribution per unit
2
Q
What is the formula for margin of safety in terms of units?
A
Budgeted level - Breakeven level of activity
3
Q
What is the formula for margin of safety as a percentage?
A
Budgeted sales - Breakeven sales/Budgeted sales x 100
4
Q
What is the formula for breakeven point in terms of sales revenue?
A
Fixed cost/C/S ratio
