Mid-term Study Guide

Mid-term Study Guide - Contribution per Unit Contribution...

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Breakeven points in Units: Dollars: Total Fixed Costs Total Fixed Costs Contribution Margin per Unit Contribution Margin Ratio Contribution Margin Ratio: Margin of safety: Contribution per Unit (or total) Budgeted Sales-BE Sales Sales Price per Unit (or total) Budgeted Sales Or: BE in Units x Price per Unit Total Sales – Breakeven Sales To calculate how many units must be sold to earn a specified profit: Total Fixed Costs + Specified Profit
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Unformatted text preview: Contribution per Unit Contribution Margin I/S: Absorption I/S: Sales (revenue) Sales (revenue) Variable Costs COGS Contribution Margin Gross Margin Fixed Costs Selling & Administrative Expenses Profit Profit Operating Leverage: Contribution Margin Profits = Sales – Variable Expense – Fixed Expense Net Income CM Method: Fixed Expenses + Target Profit Fixed Expenses + Target Profit Unit CM CM Ratio...
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This note was uploaded on 04/14/2008 for the course ACC 301 taught by Professor Bruns during the Spring '08 term at Northeastern.

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