Formula Sheet for ACCT2211 PDF

Preview

Summary

Formula sheet for all the equations...

Description

CM = total revenue – total variable costs CMu = selling price per unit – variable cost per unit OR total CM / total units CM% = CMu / selling price per unit OR total CM / total sales Gross margin = revenue – cost of goods sold Breakeven: (unit sales x Q) = (unit variable cost x Q) + fixed costs; total revenue = total cost; CM = fixed costs Breakeven # of units = fixed costs / CMu Breakeven point in bundles = fixed costs / CM per bundle Breakeven revenue = fixed costs / CM % Indifference point: sales – variable cost – fixed cost = sales – variable cost – fixed cost Operating income = sales – variable costs – fixed costs OR (selling price x Q – variable cost per unit x Q) – total fixed costs OR (contribution margin x Q) – fixed costs Target operating income = targeted net income / (1-tax rate) Target units to be sold = total fixed costs + target operating income / CMu Pre-tax Profit Units = (total fixed costs + target operating income) / CMu Revenue = (total fixed costs + target operating income) / CM% Post-tax Profit Income tax expense = operating income * tax rate Net income = operating income * (1-tax rate) Operating income = net income / (1-tax rate) Margin of Safety units = actual units – breakeven units dollars = actual revenue – breakeven revenue % = MOS units/actual units OR MOS dollars/actual dollars Operating leverage = CM/operating income...