sale-variable cost=(contribution)-fixed cost =(profit):this is the statement of
marginal cost.
(profit volume ratio)p/v ratio=contribution÷sales x 100
mos(margin of safety)=actual sales-break even point(BEP)sales.
mos(margin of safety)units=actual sales(units)-break even point(BEP)sales.(units)
BEP(rs)=fixed cost ÷ pv ratio
BEP(units)=fixed cost ÷ contribution per units
required sales(rs)=fixed cost+desired profit ÷ pv ratio
required sales(units)=fixed cost+desired profit ÷ contribution per unit .
( there is different formula for..when 2yr profit & sales are given)
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