Unformatted text preview: 10. Weighted average contribution margin = (Sales % of product A x CM of A) + (Sales% of product B x CM of product B) – continue formula for whatever amount of products are in the mix 11. Breakeven units (multiple products) =Fixed expenses / Weighted average CM per unit 12. Unit sales to achieve pre-tax profit = (Fixed expenses + Pre-tax profit)/ Contribution Margin per unit 13. Unit sales to achieve after-tax profit = (Fixed expenses + (After tax profit / (1-Tax rate)) / Con. Margin per unit 14. Operating Leverage = Contribution margin / Net Income 15. % Increase in Net Income = Operating Leverage x % Increase in Sales...
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This note was uploaded on 08/15/2011 for the course ACIS 2116 taught by Professor Cmeasterwood during the Spring '08 term at Virginia Tech.
- Spring '08