Chp 5 ACBU
Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!
Once the break-even point has been reached, net operating income will increase by the amount of the _____ for each additional unit sold.
unit contribution margin
Profit Equation
(P x Q - V x Q) - FE
contribution format income statement
Profit = (Sales - Variable Expenses) - Fixed Expenses
Contribution Margin
The amount remaining from sales revenues after all variable expenses have been deducted. so, it is the amount available to cover fixed expenses and then to provide profits for the period
variable expenses equation
VE = VE per unit X Q sold = V x Q
If sales are zero the company's loss would equal
its fixed expenses
Sales Equation
sales = selling price per unit X quantity sold = P x Q
