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D101 WGU FORMULAS
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D101 PA
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SALES REVENUE
- VARIABLE COSTS
= CONTRIBUTION MARGIN
- FIXED COSTS
= NET INCOME (LOSS)
ACTIVITY RATEActivity Cost Pool Overhead / Total Cost Driver Activity Choose an answer
1TRADITIONAL INCOME STATEMENT2SEGMENTED INCOME STATEMENT
3MULTI-STEP INCOME STATEMENT4
CONTRIBUTION MARGIN INCOME
STATEMENT
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INVENTORY FLOWBEGINNING UNITS
+ UNITS ADDED/PURCHASED
- ENDING NITS
= UNITS COMPLETED
CVP EQUATIONSales Revenue - Variable Costs - Fixed Costs = Profit
CONTRIBUTION MARGIN PER UNITSELLING PRICE PER UNIT - VARIABLE COST PER UNIT
CONTRIBUTION MARGIN INCOME STATEMENT SALES REVENUE
- VARIABLE COSTS
= CONTRIBUTION MARGIN
- FIXED COSTS
= NET INCOME (LOSS)
CONTRIBUTION MARGIN RATIOVARIABLE COSTS / SALES
BREAKEVEN POINT IN UNITSFIXED COSTS / CONTRIBUTION MARGIN PER UNIT
BREAKEVEN POINT IN SALES DOLLARSFIXED COSTS / CONTRIBUTION MARGIN RATIO
TARGET INCOME(FIXED COSTS + TARGET INCOME) / CONTRIBUTION MARGIN PER UNIT
MARGIN OF SAFETYCURRENT LEVEL OF SALES
- BREAKEVEN LEVEL OF SALES
OPERATING LEVERAGECONTRIBUTION MARGIN / OPERATING INCOME
MATERIALS PRICE VARIANCESTANDARD PRICE - ACTUAL PRICE
x ACTUAL QUANTITY
(SP-AP) X AQ
MATERIALS QUANTITY VARIANCE(Standard Quantity Allowed - Actual Quantity Used) × Standard Price
(SQ - AQ) X SP
LABOR RATE VARIANCE(ACTUAL RATE - STANDARD RATE) X ACTUAL HOURS WORKED
(AR-SR) x AH
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