WGU D101: Complete Course Review and Practice
CVP analysis equation - correct answer ✔✔Sales - Variable costs - Fixed costs = Net income.
Sales - (Sales * VC Ratio) - FC
(CVP) B/E in Units - correct answer ✔✔FC/CM per Unit = B/E in Units
(CVP) B/E in $ - correct answer ✔✔FC/CM Ratio = B/E in $
(CVP) B/E in $ - Mixed Sales - correct answer ✔✔FC/Avg CM Ratio = B/E in $
Contribution Margin - correct answer ✔✔=Sales - Variable Costs
CM Ratio - correct answer ✔✔=Contribution Margin / Sales
Average CM Ratio - correct answer ✔✔= Total CM/Total Sales
Margin of Safety - correct answer ✔✔= Current Sales - B/E Sales
Operating Leverage - correct answer ✔✔= CM / OI
-If sales increase X% then OI increases OL*X
Materials Price Variance (MPV) - correct answer ✔✔= (Std Price - Act Price) * Qty Purchased
Materials Quantity Variance (MQV) - correct answer ✔✔= (Std Qty - Act Qty) * Std Price
CVP analysis equation - correct answer ✔✔Sales - Variable costs - Fixed costs = Net income.
Sales - (Sales * VC Ratio) - FC
(CVP) B/E in Units - correct answer ✔✔FC/CM per Unit = B/E in Units
(CVP) B/E in $ - correct answer ✔✔FC/CM Ratio = B/E in $
(CVP) B/E in $ - Mixed Sales - correct answer ✔✔FC/Avg CM Ratio = B/E in $
Contribution Margin - correct answer ✔✔=Sales - Variable Costs
CM Ratio - correct answer ✔✔=Contribution Margin / Sales
Average CM Ratio - correct answer ✔✔= Total CM/Total Sales
Margin of Safety - correct answer ✔✔= Current Sales - B/E Sales
Operating Leverage - correct answer ✔✔= CM / OI
-If sales increase X% then OI increases OL*X
Materials Price Variance (MPV) - correct answer ✔✔= (Std Price - Act Price) * Qty Purchased
Materials Quantity Variance (MQV) - correct answer ✔✔= (Std Qty - Act Qty) * Std Price
