MARGINAL COSTING

1. Sales or selling price or market price or value of turnover or invoice

price or inflation price or loae price

= total cost ! profit
" varia#le cost ! fi$e cost ! profit
" contri#ution % p%v ratio
" contri#ution ! varia#le cost
" marginal cost % marginal cost ratio

&. profit or net margin or net income
= sales ' total cost
" sales ( )varia#le cost !fi$e cost*
" contri#ution ' fi$e cost
" margin of safet+ , p%v ratio

-. loss
= total cost ' sales
" fi$e cost ( contri#ution
.. contri#ution or gross margin or marginal contri#ution
" sales ( varia#le cost
" fi$e cost ! profit
" sales , p%v ratio
" fi$e cost ( loss
" fi$e cost % #reak'even units
/. fi$e cost or rigi cost or constant cost
" total cost ( varia#le cost
" contri#ution ( profit
" sales ( )varia#le cost ! profit*
" contri#ution ( loss
0. varia#le cost or marginal cost or ifferential cost
= total cost ( fi$e cost
" sales ( contri#ution
" sales ( ) fi$e cost ! profit*
" irect material ! irect la#our ! irect e$penses ! varia#le
over1ea
2. 3reak ( even point i.4e 356 ) in units* or ) in output*
" total fi$e cost% contri#ution per unit
" #reak 'even sales in rupees % selling price per unit

7. 3reak ( even point i.4e 356 )sales in rupees*
" total fi$e cost % contri#ution per unit , selling price per unit
" total fi$e cost % total contri#ution , total sales
" total fi$e cost % p%v ratio
" total fi$e cost % 1' )varia#le cost % sales*
" #reak even point )units* , selling price per unit
8. p%v ratio
" contri#ution %sales , 199
" c1ange in profit % c1ange in sales , 199
" c1ange in contri#ution % c1ange in sales , 199
19.margin of safet+
= actual sales ( #reak even sales
" profit% p%v ratio
" profit $ selling price per unit% selling price per unit ( varia#le
cost per unit
" profit% p%v ratio , 199
" margin of safet+ %actual sales , 199

11.sales volume to earn re:uire profit )in units* or sales for esire
profit )in units*
" total fi$e cost ! re:uire profit% contri#ution per unit

1&.sales volume to earn re:uire profit )in value* or sales for esire
profit )in rupees*
" )total fi$e cost ! re:uire profit * , sales % total contri#ution
" total fi$e cost ! re:uire profit % p%v ratio