Managerial accounting quiz 2 Flashcards

1
Q

Contribution margin ratio

A

Contribution Margin/Sales

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2
Q

Variable expense ratio

A

Variable expenses/Sales

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3
Q

Break-even (dollars)

A

NOI = 0

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4
Q

Break-even (Units)

A

NOI=0
(SPQ-VCQ)-FE=0

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5
Q

Margin of Safety in dollars

A

Actual sales - break even sales

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6
Q

Margin of safety %

A

Margin of safety dollars/sales

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7
Q
A
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