Accounting Formulas Test 3

# Accounting Formulas Test 3 - Accounting Formulas Test 3...

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Accounting Formulas Test 3 Used these formulas if they give you more than one company with missing information Variable Cost = Sales – Contribution Margin Fixed Cost = Sales – Variable Costs – Operating Income Contribution Margin Ratio = Contribution Margin / Sales Variable Cost Proportion = 1 – Contribution Margin Ratio Sales = Variable Cost / Variable Cost Proportion Contribution Margin = Contribution margin per unit X units sold Operating Income/Loss = Sales – Variable Cost – Fixed Costs Contribution Margin per unit = Contribution margin / units sold Contribution Margin
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Unformatted text preview: = Sales X Contribution margin ratio • Total Contribution Margin = Sales – Variable Costs • Units Sold = Contribution Margin/ Contribution margin per unit Use these formulas for one company when given costs and percentages of revenue • Breakeven Sales in Dollars = Fixed Cost / Contribution margin ratio • Breakeven point in Trades = Breakeven sales dollars / average revenue earned per trade • To graph breakeven point = (Breakeven point in Trades, Breakeven Sales in Dollars) • Units = Revenue / Revenue per Trade • To graph monthly income = ( Units, Revenue)...
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