Paper 1 formulae - Break Even Family Flashcards
1
Q
What is the equation for contribution per unit?
A
Selling Price – Variable cost per unit
2
Q
What is the equation for BPE (Break Even Point) in units?
A
Fixed Cost ÷ Contribution per unit
3
Q
What is the equation for the BPE (Break Even Point) in currency?
A
break even point in units x sales prices
4
Q
What is the equation for margin of safety?
A
Actual Output – Break Even output
5
Q
What is the equation for total contribution?
A
Actual Output – Break Even output