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M. Accounting

QuestionAnswer
Profit Profit=sales-variable costs-fixed costs Profit=Contribution margin-fixed costs
Contribution margin C. Margin= sales-variable costs
Contribution margin total contribution margin(total)= C.marg per unit * number of units sold.
Fixed Costs Fixed Costs= Contribution Margin per unit* number of units sold.
# of units sold at break even. # units sold at break even=fixed?cont. Margin per unit.
Contribution margin ratio CMR= Contribution margin per unit/ selling price per unit.
Margin of safety number of units sold above those to break even.
Operation Leverage to the degree a companys cost structure consists of fixed vs variable costs.
After Tax Profit before Tax profit* (1-tax rate)
Created by: 511052957
Popular Management sets

 

 



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