CPIM Part 2, Formulas And Calculations Flashcards
Contribution margin
Contribution margin
Sales
-
Variable costs
Contribution margin (CM) ratio
CM
/
Sales
Net income
Variable and fixed costs
B/E point (units)
Fixed costs / Unit CM
B/E point (dollars)
Fixed costs / CM Ratio
Target income sales volume
(Fixed costs + targeted income)
/
Unit CM
Current Ratio
Current Assets
/
Current liabilities
Quick asset ratio
(Current assets - inventory)
/
Current liabilities
Inventory turnover
Cost of goods sold
/
Average inventory
Debt ratio
Total liabilities
/
Total assets
Profit margin
Net income
/
Net sales
Earnings per share
(Net income - preferred dividends)
/
Common stock outstanding
Days inventory outstanding
(Average inventory
/
Cost of goods sold)
X
365
Days sales outstanding
(Average accounts receivable
/
Net credit sales)
X
365
Days payables outstanding
(Average accounts payable
/
cost of goods sold)
X
365
Return on investment (ROI)
(Gain from investment - Cost of investment)
/
Cost of investment
Payback period
Cost of investment
/
Annual cash savings
Residual income
(Minimum required rate of return x operating assets)
Absolute Forecast Error
A-F
Actual demand - forecast demand
Absolute percent error
(A-F)
/
A
Forecast accuracy
1 - Absolute Percent Error
Mean squared error (MSE)
(Sum of (Errors for each period)^2)
/
Number of forecast periods
Standard deviation
√(SUM(Actual - Average)^2
/
n-1)
PAB
Prior period PAB or on hand balance
+
MPs
-
Greater of production forecast or customer orders
Ending projected available balance (PAB) before demand time fence
Prior period PAB
+
Scheduled MPS receipt
-
Customer orders
Ending projected available balance (PAB) after demand time fence
Prior period PAB + scheduled MPS receipt - greater of customer orders or forecast
ATP period 1
On-hand quantity + MPS - SUM(customer orders before next MPS)
