Formulas to know:
Profit= Sales- Variable Costs- Fixed Costs
(formula w/ total sales & variable costs)
Profit= SP(x)- VC per unit (x)- Fixed Costs
(formula w/ per unit sales & variable costs)
-To solve for breakeven point (in units) set profit= $0
Contribution Margin (CM)
CM per unit= Sales Price - Variable Cost per unit
-Sales price can be broken up into 2 parts: Variable Cost and Contribution Margin
-Sometimes in problems, variable costs or contribution margin will be expressed as % of sales price:
# units= (Profit+ FC)/ (CM per unit)
Sales (in $)= (Profit+ FC)/ (CM ratio)
Please allow access to your computer’s microphone to use Voice Recording.
We can’t access your microphone!
Click the icon above to update your browser permissions above and try again
Reload the page to try again!
Press Cmd-0 to reset your zoom
Press Ctrl-0 to reset your zoom
It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.
Your microphone is muted
For help fixing this issue, see this FAQ.