{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Exam2 - Study Guide - Change in Fixed Costs and Sales...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Change in Fixed Costs and Sales Volume Change in Variable Costs and Sales Volume Change in Fixed Cost, Sales Price and Volume Change in Variable Cost, Fixed Cost, and Sales Volume
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Change in Selling Price : Estimate Profits # - * / of units sold above break even CM unit CM ratio = Contribution marginSales - OR Price Variable CostPrice Break Even Computations o : = + + ( ) Equation Method Sales Variable expenses Fixed expenses Profits 0 o : - = CM Method Break even point in units sold Fixed CostUnit contribution margin - OR Fixed CostPrice Variable Cost o : - = CM Method Break even point in total sales dollars Fixed CostCM ratio ( - ) OR Fixed Cost Price Variable Cost Price Target Profit Analysis o : = + + Equation Method Sales Variable expenses Fixed expenses Profits o : = + CM Method Unit sales to attain target profit Fixed expenses Target profitUnit contribution margin o : = + CM Method Dollar sales to attain target profit Fixed expenses Target profitCM ratio Margin of Safety = ( ) - Total budgeted or actual sales
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}