Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
11 Cards in this Set
- Front
- Back
Sales Mix Formula |
Product 1 Units Sold / Total Units Sold |
|
Weighted-average contribution margin |
(Unit Contribution Margin 1 x Sales Mix % 1) + (Unit Contribution Margin 2 x Sales Mix % 2) |
|
Weighted-Average Contribution Margin Ratio |
(Contribution Margin Ratio 1 x Sales Mix % 1) + (Contribution Margin Ratio 2 x Sales Mix % 2) |
|
Break-even Point in Units for multiple products |
Fixed Costs / Weighted-Average Unit Contribution Margin |
|
Break-even Point in Dollars for multiple products |
Fixed Costs / Weighted-Average Contribution Margin Ratio |
|
Contribution Margin per unit of Limited Resource |
Contribution margin per unit / Machine hours required |
|
Contribution Margin Ratio using Sales |
Contribution Margin / Sales |
|
Cost Structure |
the relative proportion of fixed vs. variable costs that a company incurs |
|
Operating Leverage |
Extent that net income reacts to a given change in sales fixed costs > variable costs = higher operating leverage High operating leverage means that profits will increase rapidly while sales revenues increase and vise versa |
|
Degree of Operating Leverage Formula |
Contribution Margin / Net Income |
|
Degree of Operating Leverage - Definition |
Provides a measure of a company's earnings volatility. Affects a company's break even point |