Formulas Flashcards
1
Q
formula for controllable margin
A
contribution margin - fc
2
Q
formula for ROI
A
controllable margin / avg operating assets
3
Q
Formula for residual income
A
controllable margin - (minimum roi x avg operating assets)
4
Q
Expanded roi : profit margin
A
NOI / sales
5
Q
Expanded roi : turnover
A
sales/ average operating assets
6
Q
ROI expanded form
A
profit margin x turnover
7
Q
sales
A
average opaerting assets x turnover
8
Q
residual income 2
A
operating income - (average op ass x min roi)
9
Q
Average operating assets
A
sales / turnover
10
Q
What is included in average operating assets
A
add up all beg operating assets (cash,a/r, inventory, plant and equipment)
add up all ending operating assets (same ones)
divided it by 2
11
Q
residual income 3
A
NOI - (min roi x avg operating assets) = residual income
