Contribution margin
sales - variable costs
Contribution margin ratio
CM / sales
Unit contribution margin ratio
unit CM / unit selling price
Change in contribution margin
CM ratio x change in sales
Variable expense ratio
variable expenses / sales
Unit sales to attain target profit
(Target profit + fixed expenses) / unit CM
Dollar sales to attain target profit
(Target profit + fixed expenses) / CM ratio
Unit sales to break even
fixed expenses / unit CM
Dollar sales to break even
fixed expenses / CM ratio
Margin of safety in dollars
total sales - break-even sales
Margin of safety percentage
margin of safety in dollars / total sales
Degree of operating leverage
Contribution margin / net income
Net income
contribution margin - fixed expenses
Percentage increase in net income
degree of operating leverage x % change in sales
Labor Efficiency Variance Formula
SR (AH - (SH * Activity))
Labor Rate Variance Formula
AH (AR-SR)
Materials Quantity Variance Formula
SP (AQU - (SQ * Activity))
Materials Price Variance Formula
AQP (AP-SP)
Variable Overhead Efficiency Variance Formula
SR (AH - (SH * Activity))
Variable Overhead Rate Variance Formula
AH (AR - SR)
Static Planning Budget Formula
Fixed + (Variable * Budgeted Quantity)
Flexible Budget Formula
Fixed + (Variable * Actual Quantity)
Activity Variance Formula
Flexible Budget - Static Planning Budget
Revenue & Spending Variance Formula
Actual Spending - Flexible Budget
