CVP analysis Flashcards
1
Q
Contribution Margin
A
Revenue-variable expenses
2
Q
CM Ratio
A
contribution margin/revenue
3
Q
Break even- Equation method
A
Sales = variable expenses + fixed expenses + profit (zero)
4
Q
Unit Contribution margin
A
sales - total variable costs/ total no. of units sold
5
Q
Break even point in units sold
A
Fixed expenses/Unit CM
6
Q
Break even point in total sales
A
Fixed expenses/CM ratio
7
Q
Margin of safety
A
revenue - breakeven revenue
8
Q
Margin of safety as a %
A
Margin of safety in €/actual revenue
9
Q
Breakeven point in a sales mix
A
fixed expenses/overall cm ratio
10
Q
Degree of operating leverage
A
CM/profit
