5 : CONTRIBUTION MARGIN RATIO
What percentage is SALES RATIO?
100%
What is the equation to calculate PROFIT with CONTRIBUTION MARGIN RATIO?
(Contribution margin ratio x sales) - fixed expenses
What is the equation for CONTRIBUTION MARGIN RATIO?
Contribution margin / sales
A ratio computed by dividing CONTRIBUTION MARGIN by sales.
Contribution margin ratio (CM ratio)
What is the FIRST equation for VARIABLE EXPENSE RATIO? HINT: SALES RATIO is 100%.
Sales ratio - contribution margin ratio
An analytical approach that focuses only on those COSTS and REVENUES that change as a result of a decision.
Incremental analysis
What is another equation for CONTRIBUTION MARGIN RATIO?
Unit contribution margin / unit sales price
What is THIRD equation for VARIABLE EXPENSE RATIO?
Unit variable expenses / unit sales price
What is the SECOND equation for VARIABLE EXPENSES RATIO?
Variable expenses / sales