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24 Cards in this Set
- Front
- Back
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How to calculate Contribution Margin Ratio (CMR)
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CMR=P-VC/P
CMR=R-VC/R |
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How to calculate the Break even point (BEP) |
BEP-->Profit=0 BEP(units)=FC/CM(units) BEP(revenue)=FC/CMR |
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How to calculate Contribution margin (CM) |
CM=Profit - VC Profit=(CM*Q) - FC |
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How to calculate Revenue (R) |
R=FC+Profit/CMR |
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How to calculate Margin of Safety (MS) |
MS=Actual or estimated R - BEP (revenue) MS=Actual or estimated units sold - BEP (units) |
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How to calculate Margin of Safty in percents |
MS%=Actual or estimated R - BEP (units)/Actual or estimated R MS%=Actual or estimated units sold - BEP (units)/actual or estimated untits sold |
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How to calculate fixed cost (FC) |
FC=TC - VC |
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How to calculate profit |
Profit = TR - TC Profit = TR - (VC+FC) Profit = (P*Q) - ((VC*Q) - FC) Profit = (CM*Q) - FC |
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How to calculate accounting rate of return (ARR) |
ARR=(Average profit/Average capital employed) *100% |
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How to calculate total cost per unit (TC, units) |
TC, units= Total cost/units produced |
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Production cost (units) |
Total production cost/units produced |
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Total cost |
Total production cost + selling and administrive expenceses |
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Total production cost |
Direct materials + Direct Labor + Overheads |
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Average profit |
Total profit over the investment period/years of investment |
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Average capital employed |
Initial investment + Result value/2 |
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Return on Investment (ROI) |
ROI=Margin*Turnover ROI= Divisional net profit/investment in net assets |
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Margin |
Margin = (Divisional net profit/Sales) *100% |
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Turnover |
Sales/Investment in net asstes |
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On Cash Flow statment |
Receipts & Payments Amortization Withdrawl |
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On Income statment |
Revenue & Costs Depriciation |
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On both Cash Flow and Income Statment |
Interest Salary |
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On Asset Side of Balance Sheet |
Cash Equipment - depreciation Acc. Rec. Stock |
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On Equity / Liabilaty side of Balance Sheet |
OB Profit Acc. Pay - Owners Withdrawl |
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Describe NPV |
•NPVis the difference between the present value of cash inflows and the presentvalue of cash outflow (initial investment). |
