10/17/25, 4:55 AM A306 Exam 1 Flashcards | Quizlet
Social Science Economics Finance
A306 Exam 1 Questions and Answers 100% Solved
C
Terms in this set (109)
Revenues (Selling Price * Units Sold)
- Variable Costs (U.V.C. * Units Sold)
Contribution Margin Income Statement = Contribution Margin ((Selling Price - U.V.C) *Units Sold)
- Fixed Costs (Given)
= Net Operating Income ((Selling Price -U.V.C.) * Units Sold)
Revenues
- Product Costs
Traditional Income Statement (GAAP) = Gross Margin
- Period Costs
= Net Operating Income
Actual Revenue - Breakeven Revenue
Margin of Safety Formula --------------------------------------------
Revenue
Unit Margin of Safety Formula Units Sold - Breakeven Units
Contribution Margin Formula Revenue - Variable Costs
Selling Price (Sales/Units Sold) - Unit Variable Costs (Total Variable Costs/Units
Unit Contribution Margin Formula
Sold)
Revenue - Variable Costs
Contribution Margin Ratio Formula - -----------------------------------OR 1 - Variable Expense Ratio
Revenue
Variable Cost Percent Formula 1 - Contribution Marigin Ratio
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, 10/17/25, 4:55 AM A306 Exam 1 Flashcards | Quizlet
Total Variable Costs
Variable Expense Ratio Formula -----------------------
Sales
Total Variable Expenses
Unit Variable Costs Formula ---------------------------
Units
Fixed Costs + Target Profit
Breakeven Units Formula -------------------------------
Unit Contribution Margin
Breakeven Revenue Formula Breakeven units * Selling Price
Traditional:
What is the difference between the - Product and Period Costs
traditional and contribution margin income
statements? CM:
- Variable and fixed Costs
Target Profit
Target Profit Formula - --------------= # of Units
CM
Balance Sheet:
- ONLY Product Costs
Difference between Balance Sheet and
Income Statement?
Income Statement:
- BOTH Product and Period Costs
Mixed Cost Formula (Unit Variable Cost * Units) + Fixed Costs
If the selling price per unit and unit variable Contribution Margin Ratio does not change 3 multiple choice options
cost both increase by 10% and fixed costs
decrease 5% and the volume sold does not
change, what is the change to the
Contribution Margin Ratio?
Unit Contribution Margin is defined as: Selling price per unit less unit variable cost 3 multiple choice options
A company has a unit contribution margin 150 Units 3 multiple choice options
of $5,000, total sales in June are estimated
at $900,000, and fixed costs are $600,000.
How many units must be sold to attain net
operating income of $150,000?
JOLO Inc sells one product for $150. Unit $60 3 multiple choice options
fixed cost is $25 and unit variable cost is
$90. Net operating income increases by
what amount if ONE more unit is sold?
2/9
Social Science Economics Finance
A306 Exam 1 Questions and Answers 100% Solved
C
Terms in this set (109)
Revenues (Selling Price * Units Sold)
- Variable Costs (U.V.C. * Units Sold)
Contribution Margin Income Statement = Contribution Margin ((Selling Price - U.V.C) *Units Sold)
- Fixed Costs (Given)
= Net Operating Income ((Selling Price -U.V.C.) * Units Sold)
Revenues
- Product Costs
Traditional Income Statement (GAAP) = Gross Margin
- Period Costs
= Net Operating Income
Actual Revenue - Breakeven Revenue
Margin of Safety Formula --------------------------------------------
Revenue
Unit Margin of Safety Formula Units Sold - Breakeven Units
Contribution Margin Formula Revenue - Variable Costs
Selling Price (Sales/Units Sold) - Unit Variable Costs (Total Variable Costs/Units
Unit Contribution Margin Formula
Sold)
Revenue - Variable Costs
Contribution Margin Ratio Formula - -----------------------------------OR 1 - Variable Expense Ratio
Revenue
Variable Cost Percent Formula 1 - Contribution Marigin Ratio
1/9
, 10/17/25, 4:55 AM A306 Exam 1 Flashcards | Quizlet
Total Variable Costs
Variable Expense Ratio Formula -----------------------
Sales
Total Variable Expenses
Unit Variable Costs Formula ---------------------------
Units
Fixed Costs + Target Profit
Breakeven Units Formula -------------------------------
Unit Contribution Margin
Breakeven Revenue Formula Breakeven units * Selling Price
Traditional:
What is the difference between the - Product and Period Costs
traditional and contribution margin income
statements? CM:
- Variable and fixed Costs
Target Profit
Target Profit Formula - --------------= # of Units
CM
Balance Sheet:
- ONLY Product Costs
Difference between Balance Sheet and
Income Statement?
Income Statement:
- BOTH Product and Period Costs
Mixed Cost Formula (Unit Variable Cost * Units) + Fixed Costs
If the selling price per unit and unit variable Contribution Margin Ratio does not change 3 multiple choice options
cost both increase by 10% and fixed costs
decrease 5% and the volume sold does not
change, what is the change to the
Contribution Margin Ratio?
Unit Contribution Margin is defined as: Selling price per unit less unit variable cost 3 multiple choice options
A company has a unit contribution margin 150 Units 3 multiple choice options
of $5,000, total sales in June are estimated
at $900,000, and fixed costs are $600,000.
How many units must be sold to attain net
operating income of $150,000?
JOLO Inc sells one product for $150. Unit $60 3 multiple choice options
fixed cost is $25 and unit variable cost is
$90. Net operating income increases by
what amount if ONE more unit is sold?
2/9
