Karteikarten
CVP & Breakeven
Karten in diesem Stapel (16)
- 1At the breakeven point how much profit do we make?0 profit.
- 2Sales = what at breakeven?Sales = All Costs at breakeven
- 3CM = what at breakeven?CM = FC at breakeven
Contribution Margin = Fixed Costs - 4All Costs = ...Total FC + Total VC
- 5What is the breakeven point?How many sales we need to generate to cover our costs.
- 6What is breakeven in units?FC/UCM
Fixed Costs/Unit Contribution Margin - 7UCM =SP - VC/Unit
- 8What is breakeven in $?(FC/UCM) x SP
- 9What is breakeven + desired level of profit in units?(FC + Profit)/UCM
- 10What is breakeven + desired level of profit in $?(FC + Profit/UCM) x SP
- 11Whether it is a manufacturing cost or not...STILL INCLUDE it in CVP analysis.
- 12Always round up for units in what?Break-even
- 13What is operating leverage?The mix of FC & VC within the cost structure.
- 14Having higher fixed costs means...There is a higher operating leverage hence there is more risk within the cost structure.
- 15Why is a high operating leverage risky?Because a higher FC results in a higher CM hence you need to sell more product to ensure you reach BE + profit.
- 16What is a margin of safety?The excess above breakeven based on current operations.