Flip to pair a measure with its rule

Exercise and reference answers

Matching pairs

1. A

   Unit CM

   B

   Price less unit VC

2. A

   Breakeven units

   B

   Fixed costs / CM

3. A

   CM ratio

   B

   CM / sales

4. A

   Operating leverage

   B

   CM / operating inc

5. A

   Margin of safety

   B

   Sales above BE

Instructions

Flip two cards to match each measure with its formula. CM means contribution margin.

Explanation