CVP-BEP

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10 Terms

1
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BEP

= FIXED COST / CM RATIO

= SALES – MOS

2
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BEP IN UNITS

= FIXED COST / CM PER UNIT

= SALES IN UNITS – MOS IN UNITS

3
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CM PER UNIT

= SP PER UNIT – VC PER UNIT

= CM PER UNIT / SALES IN UNITS

= FIXED COST / BEP IN UNITS

= PROFIT / MOS IN UNITS

= CHANGE IN FIXED COST / CHANGE IN BEP IN UNITS

4
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CM RATIO

= CM PER UNIT / SP PER UNIT

= CM/SALES

=FIXED COST/BEP

=PROFIT/MOS

=CHANGE IN FIXED COST/CHANGE IN BEP

= 1 – VC RATIO

=NET PROFIT RATIO/MOS RATIO

5
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FIXED COST

= CM – PROFIT

=TOTAL COST – VC

= BEP IN UNITS x CM PER UNIT

= BEP x CM RATIO

6
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VARIABLE COST RATIO

= VC PER UNIT / SP PER UNIT

= VC/SALES

= 1 – CM RATIO

7
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MARGIN OF SAFETY

=SALES – BEP

=PROFIT/CM RATIO

8
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NPR OR RETURN ON SALES

= EBIT/ SALES

= MOS RATIO x CM RATIO

9
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DEGREE OF OPERATING LEVERAGE

= CM / PROFIT

=CHANGE IN PROFIT %/CHANGE IN SALES %

10
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PROFIT

=REVENUE – COST

=CM – FIXED COST

= MOS PER UNIT/CM PER UNIT

=REVENUE x NET PROFIT RATIO