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Know and understand contribution income statement

Assignment Help Managerial Accounting
Reference no: EM132418460

Can you explain/answer the questions marked on each bullet point regarding managerial accounting? for example the second bullet point- briefly explain definition and include the formula

  • Know and understand Contribution Income Statement
  • What is unit CM and how do you calculate unit CM?
  • What is CM ratio and how do you calculate CM ratio?
  • Understand the profit equations:
  • Profit = Sales - Variable Expense - Fixed Expense
  • Profit = Unit CM x Q - Fixed Expense
  • Profit = CM ratio x Sales - Fixed Expense
  • How do you calculate breakeven units and breakeven dollars?
  • When price, variable cost per unit, fixed costor volume change, what is the effect on NOI?
  • Know and understand how to use the formula: ?Sales x CM ratio = ? CM
  • Understand how to use formulas to find the units or dollar sales to break even

Reference no: EM132418460

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