ADM 2304 Lecture Notes - Lecture 7: A.D. Vision, Contribution Margin, Earnings Before Interest And Taxes

• School: University of Ottawa
• Department: Administration
• Course: ADM 2304
• Professor: Tony Quon

Document Summary

Sales = variable expenses + fixed expenses + pro ts. q = q + ,000 + ,000 q = 900 bikes. = (80k + 100 k) / 200 per bike. > 200 is from 500 - 300 from using algebra above e. g, the average selling price of a cup of coffee is . 49 and the average variable expense per cup is sh. 36. 3,363 cups (1300 + 2500) / (1. 49 - 0. 36) > the excess of budgeted (or actual) sales over the break-even volume of sales. > the margin of safety can be expressed as 20% of sales. (,000 ,000) > margin of safety can be expressed in terms of the number of units sold. The margin of safety at racing is ,000, and each bike sells for . 950 cups total sales of 2100 cups - break even sales of 1150 (from the previous slide)