Week 2 Lecture 2 Flashcards
1
Q
MOS
A
Margin of saftey
2
Q
margin of saftey
A
The difference between budgeted sales and break even sales
Bs - be
Mos% = mis / budgeted sales
3
Q
SP is
A
Selling price
4
Q
SP + VC = ______ - FC = Operating Profit
A
Contribution margin
5
Q
Contribution Margin
A
The amount of sales revenue that remains for a product or service after its variable costs are deducted. Money left after VC’s.
6
Q
OP stands for
A
Operating Profits
7
Q
Operating Profit =
A
(CM x Sales volume) - FC
