CVP Analysis Flashcards
1
Q
Breakeven Point (in units)
A
Fixed costs / Contribution margin per unit (CMU)
2
Q
Contribution Margin ratio
A
CM per unit / Selling price per unit
3
Q
Breakeven point (in $ Sales)
A
Fixed costs / Contributed margin ratio
4
Q
Sales volume (units) to earn desired profit
A
Fixed costs + Desired profit before tax / Contribution margin per unit
5
Q
Margin of Safety
A
Expected sales volume less Breakeven volume / Expected volume of sales
