Formulas for Year End Exam

Flashcards covering essential business and accounting formulas for the year-end exam, including cost calculations, contribution, revenue, and break-even analysis.

Added value

$$\text{selling price} - \text{cost of bought in materials}$$

Contribution per unit

$$\text{selling price per unit} - \text{variable cost per unit}$$

Margin of safety

$$\text{Actual sales} - \text{Breakeven sales}$$

Average cost per unit

$$\frac{\text{Total cost}}{\text{output}}$$

Total costs

$$\text{Total fixed costs} + \text{Total variable costs}$$

Total variable costs

$$\text{variable costs per unit} \times \text{quantity}$$

Total revenue (or total sales)

$$\text{selling price per unit} \times \text{quantity}$$

Break-even revenue

$$\text{Break-even output} \times \text{selling price per unit}$$

Break-even level of output

$$\frac{\text{Total fixed costs}}{\text{contribution cost per unit}}$$