Mixed Costs Costs that include both fixed and variable cost components. Break- Even Point in Dollars = fixed costs / contribution margin ratio Add/Drop a Sales Region An example of a step- wise cost Contribution Margin Ratio =contribution margin per unit / selling price per unit OR = contribution margin / sales Margin of Safety (in percent) =(expected sales - break- even sales) / expected sales Cost- Volume- Profit (CVP) Analysis A planning method that includes predicting the volume of activity, the costs incurred, sales earned, and profits received Step- Wise Costs a.k.a. stair-step cost, has a step pattern in costs such as adding a shift of workers Maintenance An example of a mixed cost Variable Costs Costs that change in proportion to changes in volume of activity Contribution Margin (Formula) = Sales - Variable Costs Unit Sales at Target Income =(fixed costs + target income) / contribution margin per unit Revised Margin of Safety = (expected sales - break even sales) / expected sales Revised Break- Even Point in Do Contibution Margin (Definition) This is what is left over to cover fixed costs after sales. Contribution Margin Per Unit = selling price per unit - varaiable costs per unit Fixed Costs Costs that do not change when the volume of activity changes (within a relevant range) Add/Drop a Warehouse An example of a step- wise cost Property taxes An example of a fixed cost Shipping An example of a variable cost Straight- Line Depreciation An example of a fixed cost Revised Break- Even Point in Dollars = revised fixed costs / revised contribution margin ratio Dollar Sales at Target Income = (fixed costs + target income) / contribution margin ratio Break- Even Point in Units = fixed costs / contribution margin per unit Direct Labor An example of a variable cost Mixed Costs Costs that include both fixed and variable cost components. Break- Even Point in Dollars = fixed costs / contribution margin ratio Add/Drop a Sales Region An example of a step- wise cost Contribution Margin Ratio =contribution margin per unit / selling price per unit OR = contribution margin / sales Margin of Safety (in percent) =(expected sales - break- even sales) / expected sales Cost- Volume- Profit (CVP) Analysis A planning method that includes predicting the volume of activity, the costs incurred, sales earned, and profits received Step- Wise Costs a.k.a. stair-step cost, has a step pattern in costs such as adding a shift of workers Maintenance An example of a mixed cost Variable Costs Costs that change in proportion to changes in volume of activity Contribution Margin (Formula) = Sales - Variable Costs Unit Sales at Target Income =(fixed costs + target income) / contribution margin per unit Revised Margin of Safety = (expected sales - break even sales) / expected sales Revised Break- Even Point in Do Contibution Margin (Definition) This is what is left over to cover fixed costs after sales. Contribution Margin Per Unit = selling price per unit - varaiable costs per unit Fixed Costs Costs that do not change when the volume of activity changes (within a relevant range) Add/Drop a Warehouse An example of a step- wise cost Property taxes An example of a fixed cost Shipping An example of a variable cost Straight- Line Depreciation An example of a fixed cost Revised Break- Even Point in Dollars = revised fixed costs / revised contribution margin ratio Dollar Sales at Target Income = (fixed costs + target income) / contribution margin ratio Break- Even Point in Units = fixed costs / contribution margin per unit Direct Labor An example of a variable cost
(Print)
Costs that include both fixed and variable cost components.
= fixed costs / contribution margin ratio
An example of a step-wise cost
=contribution margin per unit / selling price per unit OR = contribution margin / sales
=(expected sales - break-even sales) / expected sales
A planning method that includes predicting the volume of activity, the costs incurred, sales earned, and profits received
a.k.a. stair-step cost, has a step pattern in costs such as adding a shift of workers
An example of a mixed cost
Costs that change in proportion to changes in volume of activity
= Sales - Variable Costs
=(fixed costs + target income) / contribution margin per unit
= (expected sales - break even sales) / expected sales
Revised Break-Even Point in Do
This is what is left over to cover fixed costs after sales.
= selling price per unit - varaiable costs per unit
Costs that do not change when the volume of activity changes (within a relevant range)
An example of a step-wise cost
An example of a fixed cost
An example of a variable cost
An example of a fixed cost
= revised fixed costs / revised contribution margin ratio
= (fixed costs + target income) / contribution margin ratio
= fixed costs / contribution margin per unit
An example of a variable cost
