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.
Total Sales = 60000 Units sold = 20000 selling price per unit = 3 Variable cost per unity = 30000 / 20000 = 1.5 Contribution margin per unit = 3 - 1.5 = 1.5
Fixed cost / (selling price - Variable cost per unit) --> Fixed cost ----------------------------------------------- (Selling Price - Variable Cost Per Unit)
Firm should keep selling units at price which atleast cover the variable cost but if it is seems that it is not able to cover even the variable cost then it should immediately do something to either reduce variable cost or increase selling price.
hey there, how do you calculate the unit selling price please? x
cost price = selling price - profit
Total fixed costs / selling price - variable cost/unit Break even points (in units) = Total fixed cost/CMPU Break even points (in Rs) = Total fixed cost/CM Ratio
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.
Grand Total Selling Price: This is the total piece price per part that is put on contract. Equals sum of Sub Total Selling Price and if applicable + Supplier's Supply Chain Cost + Expendable Dunnage + Sequencing/Sub-Assembly. See detailed below .......... Sub Total: This is the price per part (Piece Price) which includes (Total manufacturing costs + SG&A +Profit). Sub Total Selling Price: equals Sub Total + Non Mfg. Costs + SI/ED&D Total Manufacturing Cost: Sum of all material, labor and Burden cost to produce one good finished part. Purchased and Directed Buys are not included in this calculation Burden Cost: Sum of Variable Costs + Fixed Costs
Grand Total Selling Price: This is the total piece price per part that is put on contract. Equals sum of Sub Total Selling Price and if applicable + Supplier's Supply Chain Cost + Expendable Dunnage + Sequencing/Sub-Assembly. See detailed below .......... Sub Total: This is the price per part (Piece Price) which includes (Total manufacturing costs + SG&A +Profit). Sub Total Selling Price: equals Sub Total + Non Mfg. Costs + SI/ED&D Total Manufacturing Cost: Sum of all material, labor and Burden cost to produce one good finished part. Purchased and Directed Buys are not included in this calculation Burden Cost: Sum of Variable Costs + Fixed Costs
Sales (120000 * 25) 3000000Less:Variable Cost 2280000 (balancing figure)Contribution margin 720000
define cost and selling price
It depends on 120 per cent of what! 120% of marginal cost? total cost? normal selling price?
You cannot. Sales and variable costs must be functions of the units (quantities) sold and produced.