Chapter 7 Flashcards by Kristen Borse

Q

Sales formula

A

Sales(x)=VC(x) + FC + Profit

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Q

Contribution Margin

A

Sales per unit- VC per unit

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Q

Contribution Margin Ratio

A

Sales-VC/ sales

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Q

Break even in sales

A

Fixed expenses/CMR

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Q

Break even in units sold

A

Fixed expenses/CM

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Q

Sales to reach target profit

A

Fixed expenses+ profit/ CMR

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Q

of units to reach target profit

A

Fixed expenses+ profit/ CM

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Q

Margin of safety

A

Total sales-break even

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Q

Operating leverage

A

CM/NOI

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