Question 5 Flashcards
1
Q
Total Fixed Costs (TFC)
A
Fixed COGS +FS&A
2
Q
Total Variable Costs (TVC)
A
VCOGS + Commissions
3
Q
Cont. Margin per Unit (CMU)
A
(Sales - TVC)/Units
4
Q
Cont. Margin (CM)
A
Sales - TVC
5
Q
Break-Even (in $)
A
Total Fixed Costs/Cont.Margin Ratio
6
Q
Cont-Margin Ratio (CMR)
A
CM/Sales
7
Q
Break-Even (Units)
A
Total Fixed Costs/CM per Unit
8
Q
Margin of Safety ($)
A
Sales - Break-even Sales
9
Q
Income Before Tax (IBT)
A
Net Income/(1-Tax Rate)
10
Q
Required Sales
A
(TFC + IBT)/CMR
11
Q
Operating Income
A
Sales - FC - VC
12
Q
Operating Leverage
A
CM/Operating Income
