Cost Volume Profit

Dana Carpenter
Mind Map by Dana Carpenter, updated more than 1 year ago
Dana Carpenter
Created by Dana Carpenter about 4 years ago
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Various cost volume profit concepts and formulas
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Resource summary

Cost Volume Profit
1 Contribution Margin= Sales price minus variable cost
2 Breakeven in units= Fixed costs in total/CM per unit
3 Breakeven in dollars (monetary equivalent)= Fixed costs in total divided by Contribution margin rate
4 Contribution margin ratio (rate) CMR= CM divided by Sales Price
4.1 Variable Cost ratio or rate= VC divided by Sales Price OR 1- CMR
5 Unit sales needed to earn a desired profit = (Desired profit before tax plus fixed costs)/ CM
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