Unformatted text preview: The price charged to customers for the products they purchase. MU = “Mark Up” – The cash amount added to the variable cost that determines the unit selling price of a product. PP = “Projected Profit – The projected profit objective a company establishes as a benchmark to achieve over a given time period. U = “Unit” – a single measure of a product or service. R = “Revenue” – The cash that flows into the company. T = “Total” – Equals the sum of a series of numbers. (Example: TVC means “total variable cost” or “total cost.”) G = “Goal” – “Goal,” in this exercise, is the benchmark point for reaching the projected objective. CC = “Contribution to Cause” – The “cause” (fixed cost or profit) to which mark-up revenue is applied. The Breakdown Analysis Formulas – BE = _ FC_ = FC = BEU SP-VC MU PPU = _PP = PP = PPU SP-VC MU...
View Full Document
- Spring '11