Break even formula Flashcards
How do you find the contribution?
selling price per unit - variable cost per unit
How do you find the break even point in units?
Fixed costs
____________________________
Selling price - Variable cost
per unit per unit
How do you find break even point in sales value?
Break even point in units x Selling price
How do you find the profit acheived at a certain unit level?
Units x contribution - fixed costs
How do you find how many units need to be sold to make a certain profit?
Fixed costs + profit required
____________________________
contribution
How do you find the margin of safety in units?
Current production or sales units - break even units
How do you find the margin of safety in sales value?
Margin of safety in units x selling price
How do you find the variable cost per unit?
Total variable costs / Units
How do you find variable costs per unit in a table?
variable costs / units
vc per unit x units
How do you find total costs?
fixed costs + variable costs
How do you find selling price per unit?
sales/total revenue / units
How do you find sales/total revenue?
Selling price x units
How do you find the profit or loss in a table?
sales/total revenue - total costs