equations i dont know theme 2 Flashcards

1
Q

total contribution

A

contribution per unit x number of units sold

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2
Q

contribution per unit

A

selling price per unit - variable costs per unit

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3
Q

margin of safety

A
  • current sales volume / (output - break even output )
  • actual output - break even output
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4
Q

operating profit

A

gross profit - foxed costs

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5
Q

break even quation

A

total fixed costs / contribution per unit

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6
Q

gross profit

A

revenue - total variable costs

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