Break even point in dollars:
Break Even Point = Fixed Expense/Contribution margin ratio
Contribution margin ratio = contribution margin/sales
Contribution margin = Sales - variable cost
Per unit calculations are use to determine the number of units to be produced.
You just have to do all the calculations backwards. 24,000 divided by ( 1 - tax rate) = Net income before taxes. Net Income before Taxes + Fixed Expenses + Operating Expenses = Gross Profit Gross profit divided by (1 - variable expense rate) = Total Sales
$260,000 So 260,000 x .35 (profit margin) = 91,000 minus fixed costs = 0 (breakeven) Calculated by 91,000 divided by (1 - .65)
Its the amount of expenses divided on the amount of incomes *100 , so we can get the percentage of expenses from incomes .
Classification of cost is where expenses are divided into categories that include variable costs, fixed costs, material costs. These costs relate to business activities.
When accountants prepare financial statements, they assume that the life of the business can be divided into time periods. This is called the accounting period concept. Using this concept, accountants must determine in which period to report the revenues and expenses of the business.
I have handled my various expenses by doing the following:Determine if the variable expenses are 'mandatory' expenses, such as electricity, gas or food costs, or 'discretionary' expenses, such as entertainment or recreational costs. Depending on which category the expenses fall under, will determine the priority to place on each.Work on managing my usage and shopping habits to get my variable expenses to as close as I can to a "fixed" expense amount (of course with a little give and take). I have found it to be a great help when I keep a personal log of how much I spend on these expenses each month. I then work to 'mimic' the behavior I displayed in the months I spent the least amount, and this has gained me the best result.Last, eliminate or reduce what isn't absolutely necessary, such as my entertainment or recreational expenses. In other words, I may cut down on the number of times I eat out in a month or the amount I spend on unnecessary purchases.The goal is to get your variable expenses as close as you can to fixed expenses, which will help you budget, and if need be reduce the amount you spend on these expenses each month.Variable ExpensesTelephoneOffice SuppliesMarketingMeals & EntertainmentFor hefty variable costs you would require to estimate the sums and necessitated payment dates, then effort on pertaining revenue to the categories to horizontal out the peaks and vale. For slighter expenditures, you might be able to soak up them as they approach. If so then you could relate a supposed quantity to the categories each month that would in the region of cover your expected expenditure for the year divided by 12. If you couldn't swathe it all from the group balance in a month it was outstanding you would then just relate more profits that month to the invoice from other categories with additional balances.
Any variable divided by coefficients can equal 7 - provided the variable can take the appropriate value.
-9
The variable is p.
You just have to do all the calculations backwards. 24,000 divided by ( 1 - tax rate) = Net income before taxes. Net Income before Taxes + Fixed Expenses + Operating Expenses = Gross Profit Gross profit divided by (1 - variable expense rate) = Total Sales
$260,000 So 260,000 x .35 (profit margin) = 91,000 minus fixed costs = 0 (breakeven) Calculated by 91,000 divided by (1 - .65)
Its the amount of expenses divided on the amount of incomes *100 , so we can get the percentage of expenses from incomes .
X2/X = X ======= I do not think you can divide one variable type by another.
Classification of cost is where expenses are divided into categories that include variable costs, fixed costs, material costs. These costs relate to business activities.
It is the Standard normal variable.
Variable cost per unit= Total Variable costs($ amount) divided by Production units
18.75