( x + x ) / x= Break Even Income - ANSWER - ( Fixed expenses + Operating
Income) / Contribution Margin Ratio
Contribution Margin Ratio : - ANSWER - CM / Sales Rev
Break Even Sales Per Unit : - ANSWER - fixed expenses + operating expenses /
contribution margin per unit
CM per unit : - ANSWER - sales price per unit - variable costs per unit
CM percentage - ANSWER - CM per unit / sales price per unit
Total Sales per unit formula - ANSWER - (FC + OI ) / CM per unit
hint : FC and OI will be in $
Total Sales per dollar formula - ANSWER - FC + OI / CMR
CMR = - ANSWER - CM unit / Sales unit
, CM = - ANSWER - SP - VC
Total costs = - ANSWER - Total variable costs + Total fixed costs
Operating Leverage formula - ANSWER - CM / OI
change in OI percentage = - ANSWER - % change in sales X operating leverage
Margin of Safety = - ANSWER - sales - break even
Tax concept - ANSWER - comes into effect after
$ 200 profit - TR is 10%
After tax = $180
BT X ( 1- TR) (200 X (1-.1)
The dollar sales necessary to achievea target income of $21,000 after taxes of 30%
is $450,000. The FC are $240,000. What is the CMR? - ANSWER - AT = BT X ( 1-T%)
21,000 = BT ( 1-.3)
BTX .7 = 21,000
BT = 30,000
450,000= 240,000 + 30,000 / CMR
450,000 = 270,000 / CMR
270,000 ( 1/ 450,000) CMR = 60%
Assume that operating results for last year were:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller NursingTutor1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
