Paper 1 formulae - Break Even Family Flashcards

1
Q

What is the equation for contribution per unit?

A

Selling Price – Variable cost per unit

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2
Q

What is the equation for BPE (Break Even Point) in units?

A

Fixed Cost ÷ Contribution per unit

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3
Q

What is the equation for the BPE (Break Even Point) in currency?

A

break even point in units x sales prices

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4
Q

What is the equation for margin of safety?

A

Actual Output – Break Even output

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5
Q

What is the equation for total contribution?

A

Actual Output – Break Even output

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