BUS121 Chp 5

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