Accounting and Finance Exam 0.0 / 5 AccountingAccounting for ManagementUniversityAll boards Created by: ZacBuddCreated on: 30-05-18 16:27 How do you calculate contribution per unit? Selling price per unit - Variable cost per unit 1 of 10 How do you find the total absorption cost per unit? total variable cost + fixed overhead cost per unit. 2 of 10 How do you find the Contribution to sales ratio (CS ratio)? contribution per unit/selling price per unit. 3 of 10 How do you find the Sales Level needed to make required profit? (Fixed costs + required profit)/contribution per unit 4 of 10 How do you find the Break-even point (BEP) in units? Fixed costs/contribution per unit 5 of 10 How do you find the BEP in £ sales revenue? (Fixed costs/contribution per unit) x selling price OR Fixed costs/CS ratio 6 of 10 How do you find the Margin on safety (M of S) in units? budgeted sales units – break-even sales units 7 of 10 How do you find the M of S as a percentage? (M of S in units/budgeted sales) x 100 8 of 10 How do you find the M of S in £ sales revenue? (budgeted sales units – break-even sales units) x selling price 9 of 10 How do you find the Contribution per limiting factor? contribution per unit/amount of scarce resource used. 10 of 10

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