Finished off the contribution margin homework...barely. We spent 2 whole classes on it so hopefully it was enough to get everything worked out. Struggled at the end with explaining saftey margin. Think my brain was already on weekend mode. Let me try to explain it better here.
Safety margin is the sales revenue or units over and above the breakeven point. The question we had gave us the operating income not the sales revenue. To find the Sales revenue we could take the contribution margin (operating income in this case as it has already had the VC taken off and it has covered the FC) and divide it by the CMRatio. CM/CMR=Sales revenue. We found the CMR by taking total CM (10.5) and dividing it by total sales price (20).
Jeff found his calling in life as a blind guy so says David. Lisa, Jason, Angela, Irina, and Kailee missing.
Teresa says she's decided not to be a management accountant when she grows up. David on the other hand gets this stuff even if it's just me who understands his thinking.
Homework:
Read Chapter 19
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2 comments:
@ least someone understands me !!!
Hey Doug, what are restricted stock units ??
It explains it here.
http://content.members.fidelity.com/products/stockoptions/rstocksunits/1,,0,00.html
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