Term
Contributrion Margin
Per Unit = |
|
Definition
Unit Selling Price
Minus
Unit Variable Costs |
|
|
Term
Contribution Margin
Ratio = |
|
Definition
Contribution Margin Per Unit
Divided by
Unit Selling Price |
|
|
Term
|
Definition
Variable Costs
+
Fixed Costs
+
Net Income |
|
|
Term
Degree Of Operating
Leverage = |
|
Definition
Contribtution Margin
Divided by
Net Income |
|
|
Term
Break-even
Point in Units= |
|
Definition
Fixed Costs
Divided by
Contribution
Margin per Unit |
|
|
Term
Break-even
Point in Dollars = |
|
Definition
Fixed Costs
Divided by
Contribution
Margin Ratio |
|
|
Term
|
Definition
Variable Costs
+
Fixed Costs
+
Target Net Income |
|
|
Term
Required Sales
In Units = |
|
Definition
(Fixed Costs + Target NI)
Divided by
Contribution Margin per Unit |
|
|
Term
Required Sales
In Dollars = |
|
Definition
(Fixed Costs + Target NI)
Divided by
Contribution
Margin Ratio |
|
|
Term
Margin of Safety
In Dollars = |
|
Definition
Actual or Expected Sales
Minus
Break-even Sales |
|
|
Term
|
Definition
Margin of Safety in $
Divided by
Actual or Expected Sales |
|
|
Term
|
Definition
|
|
