Breakeven Analysis Formulas:
1. Calculate Profit:
Sales
€xxx (SP multiplied by the units)
Less Variable Costs (€xxx) (VCPU multiplied by the units)
Contribution
€xxx
Less Fixed Costs
(€xxx) Total Fixed Costs
Profit / (Loss)
€xxx
2. Contribution = SP(x) – VC(x) = Contribution
– x = Quantity produced and sold
– SP = Selling price per unit
– VC = Variable cost per unit
3. Breakeven Point (in units):
__ Total fixed costs __
Contribution per unit (CPU)
4. Breakeven Point (in Sales / Revenue)
__ Total fixed costs __
X
Contribution per unit (CPU)
Selling Price per unit
5. Target Profit (in units):
Fixed costs + target profit
Contribution per unit
6. Target Profit (in Sales / Revenue):
Fixed costs + target profit
Contribution per units
X
Selling Price per unit
7. Margin of Safety in Units:
Budgeted (or actual) sales units – break even sales units
8. Margin of Safety (Sales Revenue / € Value):
(1) MOS units x Selling Price
(2) Budgeted (or actual) sales revenue € – break even sales revenue €
9. Margin of Safety in Percentage terms:
Budgeted (or actual) sales revenue – break even sales revenue x 100
Budgeted (or actual) sales revenue
10. Variable Costs to Sales ratio:
Variable costs x 100
Sales
11. Contribution margin ratio:
Contribution x 100
Sales