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12 Cards in this Set
- Front
- Back
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Assumptions underlying CVP analysis
Units produced equal |
units sold
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Behavior of variable and fixed costs can be measured...
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accurately
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Changes in ____ are the only factors that affect cost.
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activity
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The product sales mix is
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constant
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What is a sales mix?
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Relative proportions in which a companys products are sold.
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At break even, net income =
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0
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At break even, contribution margin=
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fixed cost
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Contribution margin %=
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CM/sales or CM per unit/sales price
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X units=
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fixed costs+ net income/ contribution margin per unit
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$X=
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fixed costs + net income/ contribution margin %
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margin of safety=
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total sales- break even sales
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margin of safety %=
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margin of safety in dollars/total sales
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