Understanding Costs and Contributions

What is the formula for total cost?

• Total fixed cost + Total variable cost

• Total sales revenue – Total variable cost

• Selling price – per unit variable cost

• Current assets – current liabilities

How do you calculate per unit contribution?

• Selling price – per unit variable cost

• Total fixed cost + Total variable cost

• Total sales revenue – Total variable cost

• Cash flow in – cash flow out

What is the formula for total contribution?

• Total sales revenue – Total variable/direct cost

• Total fixed cost + Total variable cost

• Selling price – per unit variable cost

• Current output – break even output

How do you calculate the break-even level of output?

• Total sales revenue – Total variable cost

• Current assets – current liabilities

• Cash flow in – cash flow out

What is another way to calculate break-even output?

• Total fixed cost + Total variable cost

• Total sales revenue – Total variable cost

• Opening cash flow + net cash flow

How do you find the margin of safety?

• Current output – break even output

• Total fixed cost + Total variable cost

• Selling price – per unit variable cost

• Cash flow in – cash flow out

What is the formula for marginal cost?

• Total fixed cost + Total variable cost

• Total sales revenue – Total variable cost

• Current assets – current liabilities

How do you calculate variance?

• Budgeted value – Actual value

• Total fixed cost + Total variable cost

• Selling price – per unit variable cost

• Cash flow in – cash flow out

What is the formula for working capital?

• Current assets – current liabilities

• Total fixed cost + Total variable cost

• Total sales revenue – Total variable cost

• Opening cash flow + net cash flow

How do you find opening cash flow?

• Closing cash flow – net cash flow

• Total fixed cost + Total variable cost

• Selling price – per unit variable cost

• Cash flow in – cash flow out