Beruflich Dokumente
Kultur Dokumente
Breakeven Formula
Fixed Costs
*Contribution per unit
*Contribution per unit = Selling Price per unit Variable Cost per unit
Breakeven Chart
Margin of Safety
Example 1
Using the following data, calculate the
breakeven point and margin of safety in
units:
Selling Price = Rs.50
Variable Cost = Rs.40
Fixed Cost = Rs.70,000
Budgeted Sales = 7,500 units
Example 1: Solution
Target Profits
Example 2
Using the following data, calculate the level of
sales required to generate a profit of 10,000:
Selling Price = Rs.35
Variable Cost = Rs.20
Fixed Costs = Rs.50,000
Example 2: Solution
Marginal