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    CVP Formula Sheet

    Uploaded by

    Macron
    this is a good summary to aid in understanding the flow of in cost analysis.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    CVP Formula Sheet

    Uploaded by

    Macron
    4 views1 page
    this is a good summary to aid in understanding the flow of in cost analysis.

    Original Title

    CVP Formula sheet

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    this is a good summary to aid in understanding the flow of in cost analysis.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    4 views1 page

    CVP Formula Sheet

    Uploaded by

    Macron
    this is a good summary to aid in understanding the flow of in cost analysis.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    SU5 : CVP

    VARIABLE COST SALES


    Contribution margin
    Sales Sales =
    Contribution margin ratio
    Variable cost = Sales - contribution margin less: Variable cost Variable cost
    Sales =
    = Contribution Variable cost ratio
    Variable cost = (1 - contribution margin ratio) x Sales
    less: Fixed cost Sales =
    Margin of safety
    = Net profit Margin of safety ratio

    Target Sales Fixed cost + Target profit


    =
    (units) Contribution per uint
    FIXED COST NET PROFIT
    Net profit =
    Fixed cost = Margin of safety x Contribution margin ratio
    (Sales x contribution margin ratio) – net profit
    TAX
    Fixed cost = Net profit =
    Break-even point x contribution margin ratio (Sales x Contribution margin ratio) - Fixed cost
    Net profit Net profit after tax
    Fixed cost = = 1 – tax rate
    Net profit = Net profit ratio before tax
    Break-even (units) x contribution/unit Sales

    MARGIN OF SAFETY MARGIN OF SAFETY RATIO

    Margin of safety = Margin of = Margin of safety (rand) Margin of = Net profit


    Total sales - break-even sales safety ratio Total sales (rand) safety ratio Contribution margin

    Net profit
    Margin of safety = Margin of = Margin of safety (units)
    Contribution margin ratio
    safety ratio Total sales (units)

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