MAA TEST 2

Tuesday, April 19, 2022 9:54 AM

Tut 8: CVP
+ Contribution margin= sales - variable cost= revenue - variable cost
+ Operating income= net income/(1-tax rate)
+ Contribution margin per unit= contribution margin x selling price= unit selling price -
unit variable costs
+ Quantity of units required to be sold= (fixed costs + operating income)/ contribution
margin per unit
+ revenue= variable cost + fixed cost + operating income
+ Variable cost= revenue - contribution margin
+ total cost= variable cost + fixed cost
+ contribution margin= revenue x contribution percentage
+ Breakeven units= Fixed cost/contribution margin per unit
+ Breakeven revenue= Fixed cost/ contribution margin percentage
+ Quantity of unit required to be sold= (FC + OI)/CMU
+ Contribution margin price= selling price - variable cost per unit
+ Budget operating= contribution margin - fixed cost
+ COGS= No of unit sold x unit sold
+ Contribution margin= contribution margin per unit x the number of unit sold
+ Operating income= (selling price x sales quantity) - (unit variable costs x Sales
quantity) - Fixed costs
+ Margin of safety= Budgeted sales - BE sales
+ Mos ratio= MOS/Budgeted sales

TUT 5
+ Budgeted fixed manufacturing cost per unit= Budgeted fixed manufacturing costs /
budgeted production
+ Budgeted total manufacturing cost per unit= Budgeted fixed manufacturing cost per
unit + Budgeted variable manufacturing cost per unit
+ Revenue
Less Variable costs
Beginning inventory
Plus variable manufacturing costs
Costs of goods available for sale
Deduct ending inventory
Variable costs of goods sold
Variable non-manufacturing cost
Contribution margin
Less Fixed costs
Fixed manufacturing costs
 Fixed non-manufacturing costs
Operating income