BREAK EVEN FORMULAS: 5.5 IB BUSINESS MANAGEMENT

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