BUS 215 MIDTERM

BUS 215 MIDTERM Profit - CORRECT ANSWER-(Sales - Variable Expenses) - Fixed Expenses or (CM ratio x Sales) - Fixed Expenses Predetermined Overhead Rate - CORRECT ANSWER-estimated total manufacturing overhead / estimated total amount of the allocation base contribution margin per unit - CORRECT ANSWER-= Selling Price per unit - Variable expense per unit CM ratio - CORRECT ANSWER-Contribution Margin / Sales Variable Expense Ratio - CORRECT ANSWER-(Variable Expenses/Sales) or (1-CM ratio) Change in CM - CORRECT ANSWER-CM ratio x change in sales Change in Profit - CORRECT ANSWER-CM ratio x change in sales - change in fixed expenses Break-Even Point (finding quantity) - CORRECT ANSWER-$0 = Unit CM x Quantity - Fixed expense Break even point in units - CORRECT ANSWER-fixed costs / contribution margin per unit Break even point in sales - CORRECT ANSWER-fixed costs / contribution margin ratio Dollar Sales to Obtain Target Profit - CORRECT ANSWER-(Target Profit + Fixed Expenses) / CM Ratio Unit sales to attain target profit - CORRECT ANSWER-(Target Profit + Fixed Expenses) / Unit CM Margin of Safety in Dollars - CORRECT ANSWER-Total Sales - Break Even Sales