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  • Formulae For Costs Revenue Profit Break Even Qyun4a

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    iacharjee
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    This document outlines common formulae used to calculate costs, revenues, profit, and break-even points for a business. It defines key terms like total revenue, total costs, fixed costs, variable costs, profit, contribution, break-even point, margin of safety, and target output and pricing. The formulae show how to calculate values like total revenue from price and quantity, total costs from fixed and variable costs, and profit from revenues minus costs.

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    This document outlines common formulae used to calculate costs, revenues, profit, and break-even points for a business. It defines key terms like total revenue, total costs, fixed costs, variable costs, profit, contribution, break-even point, margin of safety, and target output and pricing. The formulae show how to calculate values like total revenue from price and quantity, total costs from fixed and variable costs, and profit from revenues minus costs.

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

    Formulae For Costs Revenue Profit Break Even Qyun4a

    Uploaded by

    iacharjee
    This document outlines common formulae used to calculate costs, revenues, profit, and break-even points for a business. It defines key terms like total revenue, total costs, fixed costs, variable costs, profit, contribution, break-even point, margin of safety, and target output and pricing. The formulae show how to calculate values like total revenue from price and quantity, total costs from fixed and variable costs, and profit from revenues minus costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    Formulae for costs, revenues, profit and

    break-even

    Total Revenue (TR) = Price x Quantity

    Total Cost (TC) = Total Fixed Costs (TFC) + Total Variable Costs (TVC)

    Total Variable Cost (TVC) = Unit Variable Cost (UVC) x Quantity

    Profit = Total Revenue (TR) - Total Cost (TC)

    Profit = Total Contribution - TFC

    Contribution Per Unit (CPU) = Price - UVC

    Total Contribution = TR - TVC

    Break-even Point (BEP) = TFC/CPU

    Margin of Safety (MoS) = Actual Quantity (AQ) - Break-even Quantity (BEQ)

    Target Output (for a target profit) = (TFC + Target profit) / Contribution per unit

    Target Price = (Required profit + Total Cost) / Quantity produced

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