Selling price = Total Cost (Total Variable cost + Total fixed cost) + profit margin
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Fixed cost / (selling price - Variable cost per unit) --> Fixed cost ----------------------------------------------- (Selling Price - Variable Cost Per Unit)
To work out the break even point you have to do this equation → (fixed cost)÷(selling price−variable cost). For example the fixed cost is $10000, the selling price is $17 and the variable cost is $12. So you would do → (10000)÷(17−12) which would equal $2000.
Sales (120000 * 25) 3000000Less:Variable Cost 2280000 (balancing figure)Contribution margin 720000
You cannot. Sales and variable costs must be functions of the units (quantities) sold and produced.
cost price multiply by profit then add the answer to the cost price =selling price