Cost accounting -Chapter9 Break-even point
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Formula for break-even point in unit
X = FC/CM
Formula for break-even point in $?
X = FC/CM%
Formula for desired profit before tax in units?
X = (FC + PBT)/CM
Formula for desired profit before tax in sale?
Sale = (FC + PBT)/CM%
Formular for contribution margin ratio CM%?
CM% = CM/SALE
Formula for profit before tax derive from profit after tax?
PBT = PAT/(1-TR)
Formula for specific amount of profit per unit?
X = FC/(CM - PuBT)
Formula for specific amount of profit per unit in sale?
- X = FC/"adjusted" CM%
- = FC/ ((P-VCu - PuBT)/P)
Margin of safety in unit? in sale? MS%
- Margin of safety = actual sale - BEP sale
- MS% = MS/actual sale
Degree of operating leverage (DOL)?
DOL = CM/PBT
Relationship between MS% and DOL?
MS% x DOL = 1
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