Calculate the fixed cost, variable costs, and break-even point for the program suggested in Appendix D.
Fixed cost / (selling price - Variable cost per unit) --> Fixed cost ----------------------------------------------- (Selling Price - Variable Cost Per Unit)
Fixed cost = 300000 Contribution margin ratio = (sales - variable cost) / sales Contribution margin ratio = (10 - 7 ) / 10 Contribution margin ratio = .3 breakeven point = 300000 / .3 = 1000000
Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = (Sales - Variable Cost) / Sales
Breakeven is when Sales minus Variable Cost minus Fixed Cost = 0 Here we have: (20,000 x 4.00) - (20,000 x 2.50) - FC = 0 80,000 - 50,000 - FC = 0 30,000 - FC = 0 So Fixed Cost = 30,000
To calculate the Total Cost without Total variable cost, one should estimate for the variables or substitute for the variables with a variable such as X or Y and then solve for the approximate total cost.
breakeven point (units) = fixed costs/contribution contribution = selling price - variable costs per unit
Formula for Breakeven point: Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = Sales / contribution margin Contribution margin = sales - variable cost
Fixed cost / (selling price - Variable cost per unit) --> Fixed cost ----------------------------------------------- (Selling Price - Variable Cost Per Unit)
Formula to calculate breakeven point is as follows: Break even point = Fixed cost / contribution margin Contribution margin = Sales - Variable cost
Breakeven point = Fixed cost / contribution margin ratio contribution margin ratio = sales - variable cost / sales.
breakeven point will decrease
Breakeven point = fixed cost / contribution margin ratio Contribution margin ratio = 4 - 1 = 3 /4 = .75 Breakeven point = 150000 .75 = 200000
Formula for breakeven point = Fixed Cost / Contribution margin Contribution margin = Total Sales - variable cost SO using above mentioned formula break even sales can be found.
Breakeven point = Fixed cost/Contribution margin Contribution margin = sales price - variable cost contribution margin = 20 - 7 = 13 Breakeven point = 173000/13 = 13307.7 units
A thermodynamics text by Cengel and Boles will have a table of equations for calculating variable specific heats in the appendix. It is like table A2-c or something like that.
breakeven = fixed cost / contribution margin ratiocontribution margin ratio = sales - variable cost / sales
Fixed cost = 300000 Contribution margin ratio = (sales - variable cost) / sales Contribution margin ratio = (10 - 7 ) / 10 Contribution margin ratio = .3 breakeven point = 300000 / .3 = 1000000