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CVP Analysis

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Break Even Point (Units) = Total Fixed Cost

Contribution Margin per unit

Contribution Margin per unit = Sales Price - Variable Cost per unit

Break Even Point (Pesos) = Total Fixed Cost


Contribution Margin Ratio
or
Break Even Point (Pesos) = Break Even Point (Units)
x Selling Price per unit

Contribution Margin Ratio = Contribution Margin per unit


Sales Price per unit

Net Income = Revenue


- Total Variable Cost
- Total Fixed Cost

Margin of Safety = Current Sales


- BEP (Sales)

Margin of Safety (pesos) = Units


x Sales Price

Margin of Safety Ratio = Margin of Safety


Total Sales

Break Even Point ( Total Units) = Total Fixed Cost


Weighted Ave. Contribution Margin
or = Total Fixed Cost
Weighted Contribution Margin per unit

Weighted Ave. Contribution Margin = Total Contribution Margin


Total Expected Sales

Total Contribution Margin = Total Fixed Cost


- Expected Net Income

Sales = Total Fixed Cost


+ Desired Profit
/ Contribution Margin per unit

Degree of Operating Leverage = Contribution Margin


Net Income

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