Accounting 241 Exam 2 Formulas (13 Qs) – Break-even, Costing Methods, Operating Leverage | Kansas State University

This complete Exam 2 formula guide for Accounting 241 contains 13 expertly answered and updated questions based on the 2025/2026 academic cycle. It covers key managerial accounting topics such as break-even analysis (in units and dollars), contribution margin, margin of safety and its ratio, degree of operating leverage, and various cost behaviors (fixed, variable, and mixed). The document also explains the linear cost equation (Y = a + bX), the high-low method, and the distinctions between absorption costing and variable costing. Each formula is paired with a clear, exam-ready definition, making this a powerful resource for exam preparation or final review. This document is especially useful for students in accounting, finance, business administration, and economics programs. It supports learning in both introductory and intermediate managerial accounting courses and aligns with similar curricula in other institutions. Keywords: break-even point, contribution margin, margin of safety, operating leverage, cost behaviors, fixed cost, variable cost, mixed cost, absorption costing, variable costing, high-low method, target profit, linear cost formula, VC ratio, CM ratio