(•۝• ѴƲ cℓʋв •۝•) BREAK EVEN

BREAK EVEN

SALES

LESS: VARIABLE COST / MARGINAL COST

CONTRIBUTION MARGIN

LESS: FIXED FOH

PROFIT

CONTRIBUTION MARGIN RATIO = CONTRIBUTION MARGIN / SALES *100

BREAK EVEN SALES IN RS. = FIXED COST / CONTRIBUTION MARGIN RATION

BREAK EVEN SALES IN UNITS = FIXED COST / CONTRIBUTION MARGIN PER UNIT

MARGIN OF SAFETY = SALES - BREAK EVEN

MARGIN OF SAFETY RATIO = SALES - BREAK EVEN / SALES * 100

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