You can change the numbers used between the units and the dollars. This will help you to know the information that is most valuable for your reports.
Formula for break even point in dollars = Fixed Cost / contribution margin formula for break even point in units = fixed cost / contribution margin ratio formula for contribution margin ratio = (sales - variable cost) / sales
Formula for Breakeven point: Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = Sales / contribution margin Contribution margin = sales - variable cost
Total fixed expenses = breakeven sales * Contribution margin ratio Contribution margin ratio = (21.5 - 16.75 ) / 21.5 = 0.22 Total fixed expenses = 634250 * 0.22 = 139535
Budgeted sales = 10000 * 25 = 250000 breakeven sales = 550000 margin of safety = 550000 - 250000 = -300000
That level of sales at which profit if the business is zero or revenue earned is equal to cost incurred.
Formula for break even point in dollars = Fixed Cost / contribution margin formula for break even point in units = fixed cost / contribution margin ratio formula for contribution margin ratio = (sales - variable cost) / sales
Formula for Breakeven point: Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = Sales / contribution margin Contribution margin = sales - variable cost
Total fixed expenses = breakeven sales * Contribution margin ratio Contribution margin ratio = (21.5 - 16.75 ) / 21.5 = 0.22 Total fixed expenses = 634250 * 0.22 = 139535
total sales - breakeven= marginal of safety
0.35 x A = 91,000 A = 91,000/.35 = 260,000 Therefore, sales at breakeven must be $260,000.
Budgeted sales = 10000 * 25 = 250000 breakeven sales = 550000 margin of safety = 550000 - 250000 = -300000
That level of sales at which profit if the business is zero or revenue earned is equal to cost incurred.
Break even sales = fixed cost + desired profit / contribution margin ratio Fixed cost = breakeven point sales * contribution margin Fixed cost = 352000 * 0.35 = 123200 Breakeven point = (123200 + 104300 ) / 0.35 Breakeven point = 332857
Breakeven point = Fixed Cost / Contribution margin Contribution margin = (Sales - Variable cost) / Sales
1. Breakeven point = fixed cost/ contribution margin ratio contribution margin ratio: (sales - variable cost)/sales Sales = 20000 * 40 = 800000 Less: Variable cost = 20000 * 10 = 200000 Contribution margin = 600000 Contribution margin ratio = 600000/800000 = .75 Breakeven point in dollars = 120000/.75 = $160000 breakeven point in units = 160000 / 40 = 4000
breakeven = fixed cost / contribution margin ratiocontribution margin ratio = sales - variable cost / sales
breakeven analysis