Cost Volume Profit Marginal Costing

Marginal Costing SP £ 220.00

VC £ 100.00 Variable Costs Covered Here
C £ 120.00

FC £ 70,000.00
C £ 120.00

583 Break Even Point It takes 583 units sold for the co

TP £ 50,000.00
C £ 120.00

417 Target Profit Achievement

Total 1000 Units To achieve target profit and cover costs, th

Production Relevant Range 900 - 1200 The minimum and maximum levels of unit

These figures are viable with repsect to the production relevant range

SP £ 240.00
VC £ 110.00
C £ 130.00

FC £ 100,000.00
C £ 130.00

769 Break Even Point

TP £ 50,000.00
C £ 130.00

385 Target Profit Achievement

Total 1154 Units With the adjusted FC, SP, C & VC

 Contribution = Selling Price - Variable Costs
Costs Covered Here
Break Even Point = Fixed Costs / Contribution

It takes 583 units sold for the company to achieve break even/cover fixed costs

e target profit and cover costs, this will be units level that'll need to be sold / This figure falls within the relevant range

mum and maximum levels of units produced that'll be suitable for the company to produce

elevant range

With the adjusted FC, SP, C & VC, the units required still falls within the relevant range