CVP Flashcards
1
Q
Profit
A
CM - FC
2
Q
CM Ratio
A
- CM/Sales x 100
- CM per unit/SP x 100
3
Q
BE(units)
A
FC/CM per unit
4
Q
BE($)
A
FC/CM ratio
5
Q
BE%
A
FC/CM x 100
6
Q
TP(units)
A
(FC + TP)/CM per unit
7
Q
TP($)
A
(FC + TP)/CM ratio
8
Q
TP%
A
(FC + TP)/CM x100
9
Q
MOS($)
A
Current sales - BE Sales
10
Q
MOS%
A
How far above the BE pt. is the company operating at
1. MOS($)/Current sales
2. 1 - BE%
11
Q
DOL
A
How sensitive the NOI is to changes in Sales
e.g DOL=5, Sales increase by 10%, NOI increases by 50%
- CM/NOI
- CM/(CM - FC)
- 1/MOS%
NOTE: from (2), when FC increase, DOL increases
