ACC 315 Ch 3(A+ Guaranteed Answers)
Contribution Margin correct answers Sales - Variable Costs
contribution margin per unit correct answers Selling price - variable cost per unit
Operating income correct answers contribution margin - fixed costs
Contribution margin percentage correct answers contribution margin / revenues
Change in Contribution Margin correct answers CM ratio x change in sales
Breakeven point correct answers the point at which the costs of producing a product equal the
revenue made from selling the product. $0 in operating income
Contribution margin per unit x break even quantity of units = correct answers Fixed costs
Breakeven Revenue correct answers fixed costs/ contribution margin percentage
Quantity of units required to be sold correct answers (fixed costs + target operating income)/
contribution margin per unit
Revenues needed to earn target operating income correct answers fixed costs + target operating
income / contribution margin percentage
Contribution Margin correct answers Sales - Variable Costs
contribution margin per unit correct answers Selling price - variable cost per unit
Operating income correct answers contribution margin - fixed costs
Contribution margin percentage correct answers contribution margin / revenues
Change in Contribution Margin correct answers CM ratio x change in sales
Breakeven point correct answers the point at which the costs of producing a product equal the
revenue made from selling the product. $0 in operating income
Contribution margin per unit x break even quantity of units = correct answers Fixed costs
Breakeven Revenue correct answers fixed costs/ contribution margin percentage
Quantity of units required to be sold correct answers (fixed costs + target operating income)/
contribution margin per unit
Revenues needed to earn target operating income correct answers fixed costs + target operating
income / contribution margin percentage
