Fixed cost = total cost / sale volume
1. Following are the methods to find fixed and variable costs if sales and cost is provided: 1 - High Low Method 2 - Scattered Diagram method 3 - Regression analysis method
- Is the total dollar volume of sales for which a given server has been responsible in a given time period, such as meal period, a day, or a week.
Sales Commission varies with volume of sales that's why it is a variable cost as much the sales as much the sales commission, high sales high sales commission and vice versa.
sale-variable cost=(contribution)-fixed cost =(profit):this is the statement of marginal cost. (profit volume ratio)p/v ratio=contribution÷sales x 100 mos(margin of safety)=actual sales-break even point(BEP)sales. mos(margin of safety)units=actual sales(units)-break even point(BEP)sales.(units) BEP(rs)=fixed cost ÷ pv ratio BEP(units)=fixed cost ÷ contribution per units required sales(rs)=fixed cost+desired profit ÷ pv ratio required sales(units)=fixed cost+desired profit ÷ contribution per unit . ( there is different formula for..when 2yr profit & sales are given) (
Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (sales - variable cost ) / Sales
Total Costs = Fixed Cost + Variable Cost soVariable Cost = Total Costs - Fixed Cost.
1. Following are the methods to find fixed and variable costs if sales and cost is provided: 1 - High Low Method 2 - Scattered Diagram method 3 - Regression analysis method
You cannot. Sales and variable costs must be functions of the units (quantities) sold and produced.
- Is the total dollar volume of sales for which a given server has been responsible in a given time period, such as meal period, a day, or a week.
Sales Commission varies with volume of sales that's why it is a variable cost as much the sales as much the sales commission, high sales high sales commission and vice versa.
Sales Commission varies with volume of sales that's why it is a variable cost as much the sales as much the sales commission, high sales high sales commission and vice versa.
Increase turnover whilst maintaining margins but without increasing fixed costs, or reduce costs, or increase margins without losing any volume sales, or any combination of the above. There is always a trade off between volume sales and margins. You need to calculate and compare the range of differences in net profit for low margin and high volume, with high margin and low volume.
Sales are the lifeblood of any successful business. An increase in sales, all other things equal, usually translates into higher profitability. Sales volume refers to the number or quantity of products sold and can be expressed in either dollar or percentage terms. You also need to consider the method used to calculate sales volume, whether or not the calculation will be based on revenue or the number of units sold as well as the time period over which you plan on measuring the sales volume
The key determinants of operating leverage include the proportion of fixed versus variable costs in a company’s cost structure, the sales volume, and the sales price. A higher proportion of fixed costs relative to variable costs increases operating leverage, which amplifies the impact of sales fluctuations on profits. Additionally, the degree to which sales volume changes can affect operating leverage; as sales rise, the fixed costs are spread over more units, enhancing profitability. Conversely, a decline in sales can significantly reduce profits due to the fixed costs remaining constant.
Volume variance is nonzero when there is a difference between the actual level of production achieved and the expected or budgeted level of production. This occurs when actual sales volume deviates from the planned sales volume, leading to changes in fixed costs allocated per unit. If the actual output is greater or less than what was anticipated, the fixed costs per unit will differ, resulting in a volume variance.
sale-variable cost=(contribution)-fixed cost =(profit):this is the statement of marginal cost. (profit volume ratio)p/v ratio=contribution÷sales x 100 mos(margin of safety)=actual sales-break even point(BEP)sales. mos(margin of safety)units=actual sales(units)-break even point(BEP)sales.(units) BEP(rs)=fixed cost ÷ pv ratio BEP(units)=fixed cost ÷ contribution per units required sales(rs)=fixed cost+desired profit ÷ pv ratio required sales(units)=fixed cost+desired profit ÷ contribution per unit . ( there is different formula for..when 2yr profit & sales are given) (
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.