Revenue (11000 * 110) 1210000
fixed Cost 385500
variable cost 698950 (balance figure)
Operating Income 125550
Variable cost per unit = 698950/11000
variable cost per unit = 63.54
Contribution margin ratio = (Sales - Variable cost) / Sales * 100
Contribution margin ratio = (1210000 - 698950 ) / 1210000
Contribution margin ratio = 0.42 or 42%
contribution margin = sales - variable cost
sales-variable coste= contribution margin
Formula for contribution is as follows: Sales revenue xxxx Less: Variable cost xxxx Contribution margin xxxx
breakeven point (units) = fixed costs/contribution contribution = selling price - variable costs per unit
48%
contribution margin = sales - variable cost
sales-variable coste= contribution margin
sales-variable cost= contribution
Formula for contribution is as follows: Sales revenue xxxx Less: Variable cost xxxx Contribution margin xxxx
Formula for contribution margin ratio = Sales – Variable cost / Sales
Increase in variable cost reduces the contribution margin as following formula suggests”Contribution margin = Sales revenue – Variable Cost
Total variable cost is typically the sum of all variable labor, variable materials, and variable overhead expenses.
Formula to calculate breakeven point is as follows: Break even point = Fixed cost / contribution margin Contribution margin = Sales - Variable cost
breakeven point (units) = fixed costs/contribution contribution = selling price - variable costs per unit
Contribution margin per unit is calculated by subtracting the variable cost of the item from the selling price of the item.
48%
Formula for Breakeven point: Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = Sales / contribution margin Contribution margin = sales - variable cost