fin 314 sheet

P = price V = variable cost Fc = fixed cost t = time in yrs
Chapter 11 quiz
Q , P , V , FC (based-plan, lower, upper) DEP = F0Costs / # yr’s

Based price for (Q , P , V , FC) multiply them each by WITHIN 10%, .10 than add, subtract
Best case +P, +Q, -V, -FC Worst case –P, -Q, +V, +FC
Best case scenario: OFC = [(Q+ x P+) – (Q+ x V-) – FC- – DEP] (1 - TAX RATE) +DEP high rev, low cost
Worst case scenario: OCF= [(Q- x P-) – (Q- x V+) – FC+ – DEP] (1 - TAX RATE) +DEP high cost, low rev
Plug OCF as payment and solve for (PV)
PV – FC = best case
TI-83 2nd finance, calc NVP, (% return on proj (given), - CF0 (cost given),
{ (OCF) best, worst case answer, repeat best case answer for how many years } )
Total cost: TC = VC +FC or FC + (Q)(V)
Avg cost = (total cost / # of units) # of units  (FC / V + Q)
Break-even point = (FC + DEP) / (P– V)
Total production cost: TPC = (material cost + variable labor exp) (production) + FC
= (V x Q) + FV
Marginal cost per pair: MCPP = material cost + variable labor exp
Avg cost per pair: ACPP = TPC / production
Total revenue: TR = (# of items) x (Marginal cost per pair)
ACCT break even = (FC + DEP) / (P-V)  contribution margin
Cash break-even point: when OCF = 0 Q = FC / (P-V)
Financial break-even: when NVP = 0 FC + (OCF) / P – V
Compute PMT if OCF not given
Degree of operating leverage: the change in OCF / % of change in Q
DOL = 1 + (FC / OCF)
Chapter 12 Capital gain = ending share price – initial share price
Total dollar return = capital gain + div
Total return = dollar return / initial share price
Dividend yield = div / initial share price
Capital gain yield = capital gain / initial share price
Dollar return = coupon + capital gain
Nominal, rate of return = dollar return / initial price investment
Avg, Real rate of return; Fisher equation: (1 + R) = (1 + r) x (1 + h)
R = nominal rate of return r = real rate of return h = inflation rate

Average return = sum / # amount
SD TI-83 Stat, edit