Important Equations Flashcards
1
Q
Total Contribution
A
CPU x Quantity = Total Contribution
2
Q
Contribution Per Unit
A
Selling Price - Variable Cost = CPU
3
Q
Profit
A
Total Contribution - Fixed Cost = Profit
or
Revenue - Total Cost = Profit
4
Q
Forecast Profit
A
Total Cost - Fixed Cost = Forecast Profit
5
Q
Break Even
A
Fixed Cost - CPU = Break Even
6
Q
Variable Cost
A
All the changeing cost such as raw materials, Credit card fees. So add all the VC.
7
Q
Fixed Cost
A
All the costs that don’t change such as internet bills, rent and salaries.
