CORRECT | WESTERN GOVERNOR'S UNIVERSITY
ACTIVITY RATE Answer - Activity Cost Pool Overhead / Total Cost Driver Activity
INVENTORY FLOW Answer - BEGINNING UNITS
+ UNITS ADDED/PURCHASED
- ENDING NITS
= UNITS COMPLETED
CVP EQUATION Answer - Sales Revenue - Variable Costs - Fixed Costs = Profit
CONTRIBUTION MARGIN PER UNIT Answer - SELLING PRICE PER UNIT -
VARIABLE COST PER UNIT
CONTRIBUTION MARGIN INCOME STATEMENT Answer - SALES REVENUE
- VARIABLE COSTS
= CONTRIBUTION MARGIN
- FIXED COSTS
= NET INCOME (LOSS)
CONTRIBUTION MARGIN RATIO Answer - VARIABLE COSTS / SALES