CVP Illustrations

 Some formulae
a) Unit contribution margin =Selling price per unit -Variable cost per unit
b) Break-even point (in units) = Fixed costs
Unit contribution margin

c) Break-even point (sh) = Break-even point in (units) x selling price/ unit OR

d) Profit =Total Revenue-Total cost

e) Total revenue=Selling Price per unit x quantity

f) Total cost =Fixed costs+ (variable cost per unit x quantity)

g) Level of sales to result in target profit (in units) = Fixed costs + target profit
Unit contribution margin