1. = total �xed expenses / weighted avg selling Breakeven Point
price - weighted average variable expenses
2. After tax pro�t/ (1- tax rate) After Tax Formula
3. Contribution per unit / selling price per unit Contribution Margin Ratio Formula
4. Selling price per unit - variable cost per unit Contribution Margin Formula
5. Di erence between selling price per unit and Contribution Margin
the variable cost per unit
6. Provides insights for e ective planning, bud- CPV (Cost Volume Pro�t)
geting, and decision making
7. Total costs and revenue Breakeven Point
8. = (your average price - average price)/aver- Premium and Discount Price Formula
age price
9. would be a positive number Premium
10. would be a negative number DIscount
11. What is the minimum price you would charge $51.25
as a company with $15,000 in variable costs,
$18,000 in Fixed Costs, and a desire for
$8,000 in contingencies (i.e. owner salary),
assuming you produce 800 units per year?
12. What is the MINIMUM price for a sport hat $16.3
company to charge when producing 1500
units per month with $20,000 Fixed Costs
and $3 per unit variable costs?
1/9
, 13. When managers are required to justify all Zero Based Budget
budgeting expenditures
14. Cost of activities needed to produce goods Activity Based budgeting
and services
15. What are the goals of Red Ocean? Beat competition
16. What are the goals of Blue Ocean? Make competition relevant
17. Blue Ocean uncontested market space
18. Red Ocean Competing in an existing market
19. Examples of Blue Ocean eBay
20. Examples of Red Ocean Cirque Du Soleil, Marvel
21. How do you create a blue ocean? Creating a completely new industry
22. How do you create a blue ocean within a red Altering an already present industry
ocean?
23. What are the two barriers? Brand recognition and economies of
scale
24. What are all the types of M&A? Merger, Takeover (hostile), Acquisition,
25. What are some reasons we do M&A? Synergy with existing business (value
combined is better than alone)
Desire for growth
External factors
Geographic position
Shareholder demands
2/9
price - weighted average variable expenses
2. After tax pro�t/ (1- tax rate) After Tax Formula
3. Contribution per unit / selling price per unit Contribution Margin Ratio Formula
4. Selling price per unit - variable cost per unit Contribution Margin Formula
5. Di erence between selling price per unit and Contribution Margin
the variable cost per unit
6. Provides insights for e ective planning, bud- CPV (Cost Volume Pro�t)
geting, and decision making
7. Total costs and revenue Breakeven Point
8. = (your average price - average price)/aver- Premium and Discount Price Formula
age price
9. would be a positive number Premium
10. would be a negative number DIscount
11. What is the minimum price you would charge $51.25
as a company with $15,000 in variable costs,
$18,000 in Fixed Costs, and a desire for
$8,000 in contingencies (i.e. owner salary),
assuming you produce 800 units per year?
12. What is the MINIMUM price for a sport hat $16.3
company to charge when producing 1500
units per month with $20,000 Fixed Costs
and $3 per unit variable costs?
1/9
, 13. When managers are required to justify all Zero Based Budget
budgeting expenditures
14. Cost of activities needed to produce goods Activity Based budgeting
and services
15. What are the goals of Red Ocean? Beat competition
16. What are the goals of Blue Ocean? Make competition relevant
17. Blue Ocean uncontested market space
18. Red Ocean Competing in an existing market
19. Examples of Blue Ocean eBay
20. Examples of Red Ocean Cirque Du Soleil, Marvel
21. How do you create a blue ocean? Creating a completely new industry
22. How do you create a blue ocean within a red Altering an already present industry
ocean?
23. What are the two barriers? Brand recognition and economies of
scale
24. What are all the types of M&A? Merger, Takeover (hostile), Acquisition,
25. What are some reasons we do M&A? Synergy with existing business (value
combined is better than alone)
Desire for growth
External factors
Geographic position
Shareholder demands
2/9
