EXAM 2 Flashcards
1
Q
CMR FORMULA
A
CM / SALES
2
Q
FORMULA: QUANTITY TO SELL FOR DESIRED PROFIT
A
P = (UNIT CM)(Q) - FIXED
3
Q
FORMULA: MARGIN OF SAFETY
A
(SALES) - [BREAK EVEN OF 0 = (U CM)(Q) - FIXED]
4
Q
FORMULA: MARGIN OF SAFETY PERCENTAGE
A
MARGIN OF SAFETY / SALES
5
Q
FORMULA: DEGREE OF OPERATING LEVERAGE
A
CM / NET OP INC
6
Q
FORMULA: ESTIMATE IMPACT OF NET OP INC CHANGE
A
(DEGREE OF OP LEVERAGE) (% CHANGE)
7
Q
FORMULA: % CHANGE IN NET OP INC
A
(CHANGE IN NET OP INC) / (ORIGINAL NET OP INC)
8
Q
FORMULA: HIGH/LOW VARIABLE COST
A
(COST CHANGE) / (ACTIVITY CHANGE)
9
Q
FORMULA: HIGH/LOW FIXED COST
A
(HIGHEST COST) - [(HIGHEST ACTIVITY) (VARIABLE COST)]
