Break-even Analysis Flashcards
1
Q
Contribution per unit formula
A
Contribution per unit = Selling Price - Variable Cost
2
Q
What is the left over?
A
Profit
3
Q
Total Contribution formula
A
contribution/unit x quantity sold
4
Q
Total contribution formula (2)
A
total revenue - total variable cost
P x Q) - (VC x Q
5
Q
Break Even Quantity formula
A
Fixed cost / Price - Variable Cost
6
Q
Break Even Quantity (2)
A
(Price x Quantity Sold) = (Fixed Cost + (Variable Cost x Quantity)
7
Q
Target Profit formula
A
Level Output (per unit) = (FC + Target profit) / (P - VC)
8
Q
Target Price
A
Level output (per unit) = (FC + target profit) / (target price - VC)
9
Q
Break Even Revenue formula
A
Break Even Revenue = BEQ x P
10
Q
Break-even formula
A
Total Revenue - Total Cost = 0
