Equations

Question 1

Breakeven point

Answer 1

Fixed costs / contribution per unit

Question 2

Breakeven sales revenue

Answer 2

Fixed costs / C/S ratio

Question 3

Output required for target profit

Answer 3

Fixed costs + Target profit / unit contribution

Question 4

Margin of safety

Answer 4

Budgeted level of activity - breakeven level of activity

Question 5

Margin of safety (%)

Answer 5

Budgeted level of activity - breakeven level of activity / budgeted level of activity X 100

Question 6

C/S ratio

Answer 6

Contribution / sales

Question 7

Sales revenue to earn a required profit

Answer 7

Required profit + fixed costs / C/S ratio

Question 8

Weighted average C/S ratio

Answer 8

Total contribution / total revenue

Question 9

Throughout

Answer 9

Sales revenue - direct material cost

Question 10

Throughout per factory hour

Answer 10

Throughout per unit / products time on the bottleneck

Question 11

Cost per factory hour

Answer 11

Total factory costs / total bottleneck resource time available

Question 12

TPAR

Answer 12

Return per factory hour / cost per factory hour