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5 Cards in this Set

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  • Back

How to calculate Breakeven point

Breakeven Point = Fixed costs / Contribution margin



Contribution margin = Net sales - total variable costs

How to calculate price elasticity of demand

Percentage change in quantity / Percentage change in price = Price elasticity of demand

Types of Benchmarking:

Internal


External


Activity (Best in class for industry)


Generic (market in general)

How to calculate Residual Income

Operating Income (PBIT) - (minimum required return x Operating assets)

How to calculate ROI:

(Revenue - COS) / Cost of Investment x 100