2.2 Formulas Flashcards
1
Q
Total costs
A
Total fixed cost + total variable costs
2
Q
Total variable costs
A
Variable costs per unit x quantity produced
3
Q
Profit
A
Total revenue - total costs
4
Q
Revenue
A
Price x quantity cold
5
Q
Contribution per unit
A
Price - variable costs per unit
6
Q
Variable costs per unit
A
Total variable costs ÷ quantity produced
7
Q
Total contribution
A
Total revenue - total variable costs
8
Q
Total contribution (2)
A
Contribution per unit x quantity sold
9
Q
Profit (2)
A
Total contribution - fixed costs
10
Q
Breakeven
A
Fixed costs ÷ contribution per unit
11
Q
Margin of safety
A
Actual output - breakeven level of output
