Lecture 4 - Costume-Profit-Volume-Analysis Flashcards
1
Q
Contribution =
A
Sales revenue - Variable costs
2
Q
The profit-Volume calculation is….
A
Contribution/Sales
3
Q
Margin of safety indicates….
A
How much sales may decrease before a loss occurs
4
Q
Margin of safety as a ratio:
A
- Expected sales - breakeven sales/Expected sales
- Actual sales - Breakeven sales/Actual sales