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12 Cards in this Set
- Front
- Back
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[CVP] Contribution Margin per Unit |
= Sale Price - Variable Cost per Unit |
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[CVP] Contribution Margin Ratio |
= Variable Cost per Unit / Sales Price per Unit |
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[CVP] Break Even Volume in Units |
= Fixed Expenses / Contribution Margin per Unit |
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[CVP] Break Even Volume in Dollars |
= Fixed Expenses / Contribution Margin Ratio (%) |
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[CVP] If a company wants to have a net income of $x, how many units must be sold? |
= (Fixed costs + new net income) / contribution margin per unit |
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[CVP] If a company wants to have a net income of $x, what sales dollars are required? |
= (Fixed costs + new net income) / contribution margin ratio |
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[CVP] If x units were sold, what would be the company's net income? |
Net Income = [Units Sold x (Selling Price - Variable Cost)] - Fixed Expenses |
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[AC & VC] Fixed Overhead in Absorption Costing |
Fixed Overhead Cost = Manufacturing Overhead / Units Produced |
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[AC & VC] Absorption Costing |
= Direct Labour + Direct Materials + Variable Overhead + Fixed Overhead |
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[AC & VC] Variable Costing |
= Direct Labour + Direct Materials + Variable Overhead |
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[AC & VC] Cost of Goods Sold under Absorption Costing |
= Absorption Costing x Units Sold |
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[AC & VC] Ending Inventory Assuming Variable Costing |
Variable Costing x Ending Inventory |
