Formulas

Formulas

1. Break even

   • In order to calculate the breakeven point, you need to determine all the fixed and variable costs involved in the operation. Fixed costs are those that are invariable, and that must be paid regardless of the level of sales. Variable costs are incurred in proportion to the level of sales.
   • Fixed costs/(selling price per unit-variable costs per unit)
   • Margin of safety
     • Current output-BEP(break even point)

2. Profit

   • Gross Profit
     • Gross Sales – Cost of goods sold
   • Net profit
     • Gross profit-total expenses
   • Profit
     • revenue-expenditure

3. Costs

   • Total Costs
     • Variable costs+fixed costs
   • Variable
     • Variable costs per unit multiplied by number sold

4. Revenue

   • Price multiplied by number sold