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5.5 break even formulas
Break even quantity
fc/ sp - avc
contribution per unit
price per unit - variable cost per unit
total contribution
total revenue - total variable cost
total contribution
contribution per unit * number of units sold
profit
tc - tfc
break even point
fc - contribution per unit
margin of safety
current output - breakeven output
total revenue
p * q
total costs
tfc + tvc
p * q is the same as
tfc + tvc
target profit output
fc + target profit/ contribution per unit
break even revenue
fc/ contribution per unit * price per unit
Note
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