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How do calculate break even point?
Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (sales - variable cost ) / Sales
How do you compute total fixed cost assuming a break even in dollars is nine hundred thousand dollar and variable cost is 630000 income tax is forty percent and contribution margin ratio is thirty per?
A contribution margin of 30% translates to Sales of $900,000 (sales-variable cost)/sales=contribution margin ratio. Since this sales level is also the break even point, there is no operating profit. Thus, a 40% tax rate is immaterial and total fixed cost equals sales minus variable cost or $270,000.
How do you calculate the break even point for EBIT?
Breakeven point = Fixed cost / contribution margin ratio contribution margin ratio = sales - variable cost / sales.
What is the difference between direct cost of sales and total cost of sales?
total cost of sales may include indirect cost as well while direct cost of sales only included direct costs.
How do you figure gross magin ratio if net sales is 28496 million its cost of good sold was 19.092 million and net income is 997 million?
Gross margin ratio = (sales - cost fo sales) / sales Gross margin ratio =( 28496 million - 19092 million ) / 28496 million
What is ratio variable?
It is the ratio generated by dividing the Variable cost over total Sales/Revenue
A company has sold 11300 units for a total sales revenue of 88140 variable cost and fixed cost are 4.29 and 2.73 per unit respectively what is the sales contribution ratio?
Total Sales Revenue = 88140 Total Cost = 11300 * (4.29+2.73) = 79326 Total Variable Cost = 79326 * 4.29 / (4.29+2.73) = 48477 Contribution Margin Ratio = 48477 / 88140 = .55 or 55 %
How do you calculate the Contribution margin ratio?
sales-variable cost= contribution
How do calculate break even point?
Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (sales - variable cost ) / Sales
What is V ratio?
The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitabilty. The Contribution is the extra amount of sales over variable cost. Contribution is also Fixed cost plus profit. Profit = Sales - Variable Cost - Fixed Cost. Thus Contribution is: Profit + Fixed Cost = Sales - Variable Cost. Therefore PV Ratio = (Contribution/Sales)X100. (This as a percentage of sales)
How can you determine sales when variable cost is given and sale ratio?
If Variable cost and sales ratio is provided then by using mathematical equation approach mixing figures can be found by using provided figures. Sales = Variable cost + Sales percentage of (Variable cost)
What is p v ratio?
The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitabilty. The Contribution is the extra amount of sales over variable cost. Contribution is also Fixed cost plus profit. Profit = Sales - Variable Cost - Fixed Cost. Thus Contribution is: Profit + Fixed Cost = Sales - Variable Cost. Therefore PV Ratio = (Contribution/Sales)X100. (This as a percentage of sales)
Contribution Margin per unit versus contribution margin ratio?
Contribution margin ratio determines the percentage of variable cost in over all sales while contribution margin per unit tells the variable cost portion in per unit total cost or sales price.
How do you do the calculation for the break even point?
Breakeven point = Fixed cost / contribution margin ratio contribution margin ratio = sales - variable cost / sales.
Calculation of break-even point?
Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = (Sales - Variable Cost) / Sales
How do you compute total fixed cost assuming a break even in dollars is nine hundred thousand dollar and variable cost is 630000 income tax is forty percent and contribution margin ratio is thirty per?
A contribution margin of 30% translates to Sales of $900,000 (sales-variable cost)/sales=contribution margin ratio. Since this sales level is also the break even point, there is no operating profit. Thus, a 40% tax rate is immaterial and total fixed cost equals sales minus variable cost or $270,000.
How do you calculate the break even point for EBIT?
Breakeven point = Fixed cost / contribution margin ratio contribution margin ratio = sales - variable cost / sales.
