Topic 7 - Breakeven analysis and contribution Flashcards
1
Q
Breakeven point
A
(Total fixed costs/ contribution per unit)
number of units to cover fixed costs
2
Q
Contribution ratio
A
(Contribution per unit/ sales price per unit) x 100%
3
Q
Breakeven revenue
A
(Fixed costs/ contribution ratio) or Breakeven point x sales prices
4
Q
Sales volume to achieve target profit
A
(Fixed costs + required profit)/ Contribution per unit