Ratios/Formulas Flashcards by Christopher Wysong | Brainscape

Q

Return on Sales

A

= Net Income / Sales

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Q

Breakeven Dollars

A

= Fixed Costs / Contribution Margin %

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Q

Operating Profit Margin

A

= Operating Income / Sales

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Q

Return on Equity

A

= Net Income / Common Stockholder’s Equity

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Q

Asset Turnover

A

= Sales / Total Assets (or Average)

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Q

Profit Margin (Return on Sales)

A

= Net Income / Net Sales

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Q

Contribution Margin %

A

= Contribution Margin / Price (Sales)

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Q

Contribution Margin

A

= Revenue - Variable Expense

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Q

Return on Investment (or Return on Assets)

A

= Net Income / Total Assets

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Q

DuPont approach to ROI

A

= Return on Sales x Asset Turnover

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Q

Gross Margin

A

= Revenue - Cost of Goods Sold

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Q

Price/Rate Variance

A

= AQ (AP-SP)

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Q

Breakeven Units

A

= Fixed Costs / Contribution Margin

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Q

Usage/Efficiency Variance

A

= SP (AQ - SQ)

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Q

Residual Income

A

= Operating Income - (Required Rate of Return x Invested Capital)

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