BUS 215 Midterm || Passed!!!

BUS 215 Midterm || Passed!!!
Profit correct answers (Sales - Variable Expenses) - Fixed Expenses
or
(CM ratio x Sales) - Fixed Expenses

Predetermined Overhead Rate correct answers estimated total manufacturing overhead /
estimated total amount of the allocation base

contribution margin per unit correct answers = Selling Price per unit - Variable expense per
unit

CM ratio correct answers Contribution Margin / Sales

Variable Expense Ratio correct answers (Variable Expenses/Sales) or (1-CM ratio)

Change in CM correct answers CM ratio x change in sales

Change in Profit correct answers CM ratio x change in sales - change in fixed expenses

Break-Even Point (finding quantity) correct answers $0 = Unit CM x Quantity - Fixed
expense

Break even point in units correct answers fixed costs / contribution margin per unit

Break even point in sales correct answers fixed costs / contribution margin ratio

Dollar Sales to Obtain Target Profit correct answers (Target Profit + Fixed Expenses) / CM
Ratio

Unit sales to attain target profit correct answers (Target Profit + Fixed Expenses) / Unit CM

Margin of Safety in Dollars correct answers Total Sales - Break Even Sales

Margin of Safety in percentage correct answers margin of safety in dollars / total sales

Degree of operating leverage correct answers Contribution Margin / Net Operating Income

Percentage change in net operating income correct answers degree of operating leverage x
percentage change in sales

Raw material used in production correct answers debit: work in process
credit: Raw materials

Work completed correct answers debit: finished goods
credit: work in process

application of overhead cost: correct answers debit: work in process
credit: manufactoring overhead