| Question |
Answer |
Steps |
| Contribution Margin |
Sales-Variable Expense |
|
| Operating Income |
Total CM-Fixed Costs |
1.Contribution Margin |
| Units to be sold to acheive target income using Operating Income |
Operating income=(Price X Units sold)-(Unit variable cost X Units sold)-Fixed cost |
Unit Variable cost |
| Units to be sold to acheive target income using break-even |
(Fixed cost + Target income)/CM per unit |
1.Unit Variable Cost |
| Varibable cost ratio |
variable cost per unit/selling price per unit |
Unit Variable Cost |
| Contributio Margin ratio (unit or total) |
(CM/sales) |
1.Unit variable Cost(if units, 2.Contribution Margin |
| Break even revenue |
(total fixed cost+target income)/ cm ratio |
1.Contribution Margin, 2.CM ratio |
| Unit Variable Cost |
total variable cost/units |
|
| Contribution Margin per Unit |
selling price per unit-unit variable cost |
1.Unit variable cost |
| CM ratio+ VC ratio= |
100 |
|
| Contribution Margin Income Statement |
(Sales-VC=CM-FC=OI)or(Sales-CGS=GM-Sell-Admin)=OI |
|
| Package Unit Contribution Margin [per product] |
Contribution Margin per unit X Sales mix per unit [per product] |
1.Unit variable cost, 2.Contribution Margin per Unit |
| Package Contribution Margin |
total all product contribution margin |
1.Unit variable cost, 2.Contribution Margin per Unit, 3.Package unit [per product] |
| Break-Even packages |
total fixed cost/package contribution margin |
1.Unit variable cost, 2.Contribution Margin per Unit, 3.Package unit [per product], 4.Package Contibution Margin |
| Break-Even units [per product] |
package BE X sales mix |
1.Unit variable cost, 2.Contribution Margin per Unit, 3.Package unit [per product], 4.Package Contibution Margin, 5.Break-Even packages |
| Sales Mix |
lowest possible whole number of units sold ratio |
|
| Break-Even Sales Dollars |
Fixed Costs/Contribution Margin Ratio |
1.CM, 2.CM ratio |
| Margin of safety in units |
unit sales-break even units |
1.Unit variable cost, 2.Contribution Margin per Unit, 3.Package unit [per product], 4.Package Contibution Margin, 5.Break-Even packages, 6.Break even units |
| Margin of Safety in Sales revenue |
(sales-break even sales)or(MOS units X price) |
(1.CM, 2.CM ratio) or (1.Unit variable cost, 2.Contribution Margin per Unit, 3.Package unit [per product], 4.Package Contibution Margin, 5.Break-Even packages) |
| Percent Change in Operating Leverage |
DOL X % change |
1.Contribution margin, 2.Operating Income, 3.DOL |
| Expected Operating Income |
Original Operating Income+(% Change in Operating Income X original operating income) |
1.Contribution margin, 2.Operating Income |
| Sales Revenue to achieve a Target Income |
(Fixed cost + Target income)/CM Ratio |
1.Contribution Margin, 2.CM ratio |
| Break Even Units |
Total FC/Unit CM |
1.Unit Variable Cost, 2.Unit CM |
| Predetermind Overhead Rate |
Estimated Annual Overhead/Estimated Annual Avtivity level |
|
| Applied Overhead |
Predetermind Overhead Rate X Actual Activity Level |
1.Predetermind Overhead Rate |
| Overhead Variance |
Actual overhead- applied overhead |
1.Predetermind Overhead Rate,(actual > applied)=under(actual
|
| Adjusted CGS |
Unadjusted CGS(+under or -over)overhead variance |
Overhead Variance |
| Predetermind Departmental Overhead Rate |
Estimated Departmental Overhead/estimated dempartmental activity level |
|
| Target Income Units |
(Fixed Costs+target Income)/Unit CM |
|
| Variable Cost Ratio |
VC/Price |
|
| WIP |
all uncompleted jobs |
|
| FG |
completed but not sold |
|
| CGS |
completed & sold |
|
| Velocity |
Units/time |
|
| Cycle time |
Time/Units |
|
| Activity OH Rate |
Activity Cost/Total activity |
|
| Per Unit Product Cost |
{(Activity OH rate X product activity)[per activity] Totaled/units}+prime costs |
1.Activity OH Rate |
| Percent Change in Operating Income |
DOL X % change |
|
| Additional Profit w/ CM |
CM ratio X additional sales |
|
| consumption ratio |
product activity/total driver activities |
|
| activity rate |
estimated activity cost/ total driver activities |
|
| activity cost |
activity rate X product activities |
|
| activity unit cost |
(DM+DL+OH)/units |
|
| activity cost based on activities used |
activity rate X product activities used |
|
| Degree of Operating Leverage(DOL) |
Total Contribution Margin/Operating Income |
1.Contribution margin, 2.Operating Income |
Science Vocab 147928
