Break Even Analysis Equations Flashcards
Break-EvenPoint(Units)=
Number of units needed to be sold to cover all costs.
fixed costs / selling price- variable costs
Break-EvenPoint(Revenue)=
Revenue needed to be sold to cover all costs.
Break even point units x selling price per unit
ContributionperUnit=
How much each unit sold contributes toward covering fixed costs.
Selling price per unit - variable cost per unit
MarginofSafety(Units)=
(Can also be expressed as a %)
The difference between actual sales and the break-even level of sales.
Actual sales - break even sales
Profit=
(Using margin of safety)
Contribution per unit x margin of safety
Total revenue=
quantity sold x selling price
Total contribution=
sales revenue − total variable costs
Total variable costs=
variable cost per unit × quantity
Sales in volume= quantity sold
What is:
sales in value=
quantity sold x selling price
