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Cost Volume Profit Analysis
Breakeven point in units = Fixed costs
Contribution per unit
Level of activity to earn a required profit = Required profit+ Fixed costs
Contribution per unit
Margin of safety = Budgeted level of activity – breakeven level of activity
Margin of safety expressed as a % = Budgeted sales-breakeven sales × 100
Budgeted sales
Contribution to sales ratio (C/S ratio) = Contribution
Sales
Breakeven point in sales revenue = Fixed costs
CS ratio
Sales revenue required to earn a target profit = Required profit + Fixed costs
CS ratio
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