Useful Formulas Flashcards
1
Q
Contribution ?
A
Selling price - variable cost
2
Q
Contribution to sales %
A
Contribution / sales revenue
3
Q
Break even in units ?
A
Fixed costs / contribution per unit
4
Q
Break even in sales revenue
A
Fixed costs / contribution sales%
5
Q
Margin of safety in units ?
A
Actual output - break even point
6
Q
Margin of safety percentage ?
A
Actual - break even / actual