From the course: Finance and Accounting Tips
Unlock the full course today
Join today to access over 22,600 courses taught by industry experts or purchase this course individually.
Contribution margin and the sales mix of products
From the course: Finance and Accounting Tips
Contribution margin and the sales mix of products
- On the way to the studio today, I stopped at a recognizable fast food establishment to get some food, fast. Every time I go into this place, they're always trying to up size me. Larger drink, larger fries. - You don't want larger? You don't want bigger? - If I wanted bigger I wouldn't ordered bigger. Why do they do that? - Well dear brother, it's all about accounting. - What? What does a larger drink have to do with accounting? - To explain, let's step back for a moment and talk about a concept called contribution margin. - [Man On Right] Ah, I know what that is. The Contribution margin is the selling price of a product less the variable cost required to produce that product. The difference, the Contribution Margin, is then used to cover your fixed costs and once those costs are covered, the Contribution Margin becomes profit. - Exactly. Now you can use information about about selling price, variable costs, and fixed cost to compute the number of units required before a company…
Contents
-
-
-
Overview of the balance sheet6m 36s
-
(Locked)
Limitations of the balance sheet5m 33s
-
(Locked)
Accrual accounting3m 10s
-
(Locked)
Income statement4m 36s
-
(Locked)
How to common-size the income statement3m 16s
-
(Locked)
Financial statement ratios4m 10s
-
(Locked)
The DuPont framework and return on equity4m 35s
-
(Locked)
Debits and credits5m 53s
-
(Locked)
Understand a company's operating cycle5m 9s
-
(Locked)
How to compute days' purchases in payables3m 41s
-
(Locked)
The current ratio and liquidity4m 4s
-
(Locked)
Leverage ratios6m 49s
-
(Locked)
When to capitalize or expense costs4m 48s
-
(Locked)
Timing of revenue recognition6m 57s
-
(Locked)
The statement of cash flows5m 46s
-
(Locked)
Earnings management6m 20s
-
(Locked)
What is depreciation?4m 19s
-
(Locked)
Forecasting financial statements5m 2s
-
(Locked)
Dividends and stock buybacks5m 46s
-
(Locked)
Loan payments: Understand interest and principal4m 40s
-
(Locked)
Price maker or price taker and the impact of overhead costs4m
-
(Locked)
Activity-based costing (ABC) and overhead4m 6s
-
(Locked)
Cost-volume-profit analysis4m 48s
-
(Locked)
Contribution margin and the sales mix of products4m 11s
-
(Locked)
Save early, save often4m 12s
-
Take the 401(k) match4m 27s
-
(Locked)
Making extra payments3m 26s
-
(Locked)
Low introductory interest rates4m 14s
-
(Locked)
LIFO, FIFO, and FISH4m 31s
-
(Locked)
Different depreciation methods3m 38s
-
(Locked)
Capital asset pricing model (CAPM)5m 22s
-
(Locked)
Sarbanes-Oxley and internal controls3m 55s
-
(Locked)
What is a derivative?5m 1s
-
(Locked)
Accounting for gift cards3m 57s
-
(Locked)
What is beta?5m 52s
-
(Locked)
What is an IPO?5m 8s
-
(Locked)
Components of a compensation package3m 11s
-
(Locked)
Impairment4m 10s
-
(Locked)
Earnings per share4m 7s
-
(Locked)
Calculate a car payment4m 52s
-
(Locked)
Deferred taxes6m
-
(Locked)
Foreign currency transactions5m 13s
-
(Locked)
What do auditors do?5m 48s
-
(Locked)
Steps in creating a personal budget4m 41s
-
(Locked)
Pensions3m 53s
-
(Locked)
Obtaining financial information4m 46s
-
(Locked)
Internal controls6m 14s
-
(Locked)
Standards and variances3m 30s
-
(Locked)
What is corporate governance?4m 7s
-