CVP

Question 1

BREAKEVEN POINT IN UNITS

Answer 1

FIXED COSTS / UNIT CONTRIBUTION MARGIN

Question 2

BREAKEVEN POINT IN DOLLARS

Answer 2

FIXED COSTS / CONTRIBUTION MARGIN RATIO

Question 3

MARGIN OF SAFETY

Answer 3

PLANNED SALES - BREAKEVEN SALES

Question 4

MARGIN OF SAFETY RATIO

Answer 4

MARGIN OF SAFETY / PLANNED SALES

Question 5

TARGET INCOME IN UNITS

Answer 5

(FIXED COSTS + TARGET OPERATING INCOME) / UNIT CONTRIBUTION MARGIN

Question 6

TARGET INCOME IN UNITS

Answer 6

{FIXED COSTS + [TARGET NET INCOME ÷ (1-TAX RATE)]} / UNIT CONTRIBUTION MARGIN

Question 7

OPERATING INCOME

Answer 7

SALES - VARIABLE COSTS - FIXED COSTS