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Unformatted text preview: Assigned overhead = POHR * standard activity POHR = overhead from the flexible budget for the denominator level of activity / denominator level of activity Contribution margin ratio = Total CM / Total sales In terms of units , the contribution margin ratio is CM Ratio = Unit CM / Unit selling Price Break-Even Analysis Equation method = Sales = Variable expenses + Fixed expenses + Profits Break-even point in units sold = Fixed expenses / CM per unit Break-even point in total sales dollars = Fixed expenses / CM ratio Present value of $ 1 ; 1 / (1 + r) n Present value of an annuity of $ 1 in arrears; 1/r [ 1 1/(1=r) n ]...
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- Spring '09