Managerial Accounting equations

Contribution Margin (CM per unit)

Selling Price per Unit−Variable Cost per Unit

Contribution Margin (Total CM)

CM per Unit × Units Sold

Contribution Margin Ratio (CMR)

CM per Unit​ ÷ Selling Price per Unit​

Break-Even Analysis (units)

Fixed costs ÷ CM per unit

Break-Even Analysis ($)

Fixed costs ÷ CM ratio

Target Profit Analysis ( required units)

Fixed Costs + Target Profit​ ÷ CM per unit

Target Profit Analysis ( required $)

Fixed Costs + Target Profit​ ÷ CM ratio

Margin of Safety ( in $)

Actual Sales − Break-even Sales

Margin of Safety ( in %)

Actual Sales ÷ Margin of Safety ​× 100

High-Low Method (Variable Mixed Costs)

Variable Cost per Unit=

Cost at High Level − Cost at Low Level​ ÷

Units at High Level − Units at Low Level

Cost Equation (for Mixed Costs)

Fixed Cost + (Variable Cost per Unit × Units)