BUS121 Chp 5
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NOI can be calculated as
(unit sales - unit sales to break even) x unit contribution margin
After reaching the break even point, a company's NOI will increase by the ___ ___ per unit for each additional unit sold.
contribution margin
The variable expense ratio is the ratio of variable expense to:
sales
when preparing a CVP graph (aka break even chart) , the horizontal axis represents ___
sales volume note: vertical axis represent profit
The single point where the total revenue line crosses the total expense line on the CVP graph indicates:
break even point & profit = 0
The break even point is the level of sales at which the profit equals ___.
zero