PART 1 Flashcards

Breakeven and State of Investment

1
Q

Operational break even

A

(EBIT = 0)

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2
Q

Financial break even

A

(Pre-tax result = 0)

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3
Q

Value creation break even

A

(result > Cost of capital employed)

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4
Q

Unit Contribution

A

= Margin per Unit = Unit Selling Price – Unit Variable Cost

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5
Q

Contribution Margin

A

= Unit Contribution / Unit Selling Price

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6
Q

Breakeven in volume

A

= Total Fixed Cost / Unit Contribution

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7
Q

Breakeven in sales

A

= Total Fixed Cost / Contribution Margin

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8
Q

Current State of Investment (CSI)

A

= Net Fixed Assets/Gross Fixed Assets

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9
Q

Net Fixed Assets

A

= Gross Fixed Assets - Cumulated Depreciation

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10
Q

Gross Fixed Assets

A

= Historical Acquisition Price

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11
Q

CSI = 90%

A

—-> Production Capacity is New

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12
Q

CSI = 20%

A

—-> Production Capacity is Old

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