Create an account
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:
Please allow access to your computer’s microphone to use Voice Recording.
Having trouble? Click here for help.
We can’t access your microphone!
Click the icon above to update your browser permissions and try again
Reload the page to try again!Reload
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.
Please upgrade Flash or install Chrome
to use Voice Recording.
For more help, see our troubleshooting page.
Your microphone is muted
For help fixing this issue, see this FAQ.
Star this term
You can study starred terms together