CVP Flashcards
1
Q
Formula for Margin of Safety?
A
Budgeted Sales - BEP Sales
2
Q
Formula for Margin of Safety as a %?
A
(Budgeted Sales - BEP Sales / Budgeted Sales) X 100
3
Q
BEP Units Formula?
A
TFC / Contribution Per Unit
4
Q
Target Profit Formula for Units?
A
TFC + TP / Contribution P/U
5
Q
C/S Ratio
A
Contribution Per Unit / Sales Revenue Per unit
6
Q
Weighted Average Contribution Per Unit Formula?
A
Total Contribution from all Products / Total Budgeted Units
7
Q
Target Profit formula in £?
A
TFC + TP / C/S Ratio
8
Q
How to calculate Break Even Sales Revenue?
A
Fixed Costs / CS Ratio
