Cost and Revenues Ratio - name and calculation
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
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| show | Budgeted (or actual) sales - Break even sales | The maximum number of units that the company can stop selling and not make a loss
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| Margin of Safety (%) | show | The maximum % of sales that the company can stop selling and not make a loss.
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| Contribution | Sales - variable costs | show 🗑
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| Target profit units | (Fixed costs + Target Profit)/ Contribution per unit | show 🗑
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| show | Contribution - fixed costs | What remains after deducting all costs
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| Break - even point (£) | (Fixed costs/ contribution per unit) x sales price per unit | show 🗑
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| show | Fixed costs/Contribution per unit | The point in units at which all fixed costs are covered and no profit or loss is made.
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| Profit Volume Ratio | show | Contribution expressed as a percentage of sales.
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Created by:
KayeDavis
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