Useful Formulas Flashcards

1
Q

Contribution ?

A

Selling price - variable cost

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2
Q

Contribution to sales %

A

Contribution / sales revenue

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3
Q

Break even in units ?

A

Fixed costs / contribution per unit

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4
Q

Break even in sales revenue

A

Fixed costs / contribution sales%

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5
Q

Margin of safety in units ?

A

Actual output - break even point

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6
Q

Margin of safety percentage ?

A

Actual - break even / actual

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