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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.
- Spring '08