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Description
Flashcards by Sophia Lynch, updated more than 1 year ago
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Created by Sophia Lynch
almost 4 years ago
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| Question | Answer |
| How do you work out the variable rate? | Cost / Units = VR (Unitising) |
| Why do you leave the fixed costs alone? | Because they remain fixed regardless if quantity increases. |
| Total Cost = | Variable Rate x Units |
| Contribution Margin = If they ask for a total? | Sales - Variable Costs (In total) - (In total) |
| Unit Contribution Margin (UCM) = | Sale Price (SP) - (VC/Unit) |
| What does the sales contribution margin format look like? | Sales - VC = CM - FC = P or L |
| What is the Contribution Margin Ratio? | Total CM/Total Sales OR UCM/SP it give a %! |
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