Breakeven analysis

Question 1

Total contribution

Answer 1

CPU x sales volume

Question 2

Breakeven point

Answer 2

Total fixed cost / contribution per unit

Question 3

Contribution ratio

Answer 3

total contribution / total revenue
or
contribution per unit / selling price per unit

Question 4

Revenue generated at the Breakeven point

Answer 4

Fixed costs / contribution ratio

Question 5

Margin of safety (units)

Answer 5

Budgeted sales volume - breakeven sales volume

Question 6

Margin of safety (%)

Answer 6

(Budgeted output - Breakeven output) / Budgeted output

Question 7

Contribution per unit

Answer 7

CPU = selling price per unit - selling cost per unit

Question 8

sales volume for a target profit

Answer 8

(Fixed costs + target profit) / contribution per unit

Question 9

Limiting factor analysis

Answer 9

1. calculate contribution per unit for each product
2. Calculate contribution per limiting factor each product
3. Rank the products in accordance with step 2 findings
4. Allocate and detainee optimal plan

Question 10

Make or buy

Answer 10

1. Calculate cost saving per unit if made internally
2. Calculate savings per limiting factor (cost savings / limiting factor)
3. rank in accordance with findings in 2.
4. Allocate and determine optimal production plan.