contribution margin = sales - variable cost
No. Operating profit margin usually means profit in terms of strict cost and revenues of the firm itself. Actual profit margin includes other, non-firm specific costs, such as payment of debts (which is not part of operation but still a liability of the firm).
IF cost of goods is available and margin is also provided then sales can be calculated as follows: Sales = Cost of goods / margin of sales
Formula to calculate breakeven point is as follows: Break even point = Fixed cost / contribution margin Contribution margin = Sales - Variable cost
(selling price - direct cost)/selling price = direct margin
Formula for Breakeven point: Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = Sales / contribution margin Contribution margin = sales - variable cost
Formula for contribution margin ratio = Sales – Variable cost / Sales
sales-variable cost= contribution
Break even point = Fixed Cost / Contribution margin
To calculate the difference between margin and markup in pricing strategies, you can use the following formulas: Margin (Selling Price - Cost) / Selling Price Markup (Selling Price - Cost) / Cost Margin represents the percentage of the selling price that is profit, while markup represents the percentage of the cost that is profit. The key difference is that margin is calculated based on the selling price, while markup is calculated based on the cost.
Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (sales - variable cost ) / Sales
Breakeven point = Fixed cost / contribution margin ratio contribution margin ratio = sales - variable cost / sales.