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Unformatted text preview: SR VC = CM FC = OPY If CM = FC; breakeven point Calculating Units SR = (SP)(# of units sold) VC = (VC/unit)(# of units) CM = (CM/unit)(# of units) # of units = (FC +OPY)/(CM/unit) Sales dollars go first to VC (1/2), then FC (1/4), then OPY (1/4) The portion of your sales dollar that goes to cover variable cost is called variable cost ratio (VC)/(SR) or (unit VC)/(SP) VC% + CM% = 100% CM% = CM/SR...
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 Spring '08
 FARMER
 Accounting, Income Statement

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