CM Income statement Sales -Variable Cost (VC) Contribution Margin (CM) -Fixed Cost (FC) Net Operating Income Additional Units to Break-even VARIABLE COGS Overall Master Formula (use for anything) Sales

Overall Master Formula (use for anything)

EXAM 2 ACCT

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Accounting - Financial Accounting

mmoranwkf Created by 5 mon ago

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Contribution Margin (CM) / Sales OR 1 - Variable Expense (VE) Ratio OR Sales - VC / Sales VE + CM Ratio = 100%

Variable Expenses (VE) / Sales OR 1 - Contribution Margin (CM) Ratio VE + CM Ratio = 100%

Profit = Unit Contribution Margin X Quantity - Fixed Expenses

Fixed Expenses (Costs) / Unit Contribution Margin (CM)

fixed expenses (Costs) / contribution margin (CM) ratio

Total Sales - Break-even Sales

Contribution Margin / Net Operating Income

CM Income statement Sales -Variable Cost (VC) Contribution Margin (CM) -Fixed Cost (FC) Net Operating Income

Target Profit + Fixed Cost (FC) Unit Contribution Margin OR CM - Fixed Cost

Break Even (BE) Sales X Contribution Margin (CM)

Break Even Units - Actual Units Sold

Cost Per Unit X (1 - Variable Cost Ratio)

Selling Price - Total Variable Cost (VC) OR Contribution Margin (CM) / Unit Sales

(Increase or Decrease X CM Ratio) - Expense increase or decrease

Cost Per Unit - Contribution Margin

Direct Materials (DM) Direct Labor (DL) Variable Manufacturing Overhead (VMOH) Fixed Manufacturing Overhead (FMOH)

Direct Materials (DM) Direct Labor (DL) Variable Manufacturing Overhead (VMOH)

DM + DL + VMOH + (FMOH / Units produced)

DM + DL + VMOH

Traditional income statement Sales -COGS =Gross Margin -Selling & Admin =Net Operating Income

Contribution format Sales -Variable Cost -COGS -Selling & Admin Contribution Margin -Fixed Cost -Fixed MOH -Fixed Selling & Admin Net Operating Income

Units Sold X Variable Selling & Admin + Fixed Selling & Admin

Units Sold X Absorption Cost

Units Sold X Variable Cost

Units Sold X Selling Price

(Goods Produced - Goods Sold) X FMOH

(Traceable fixed costs + Common fixed costs) / CM Ratio

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EXAM 2 ACCT

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