Quick_Reference_to_Managerial_Accounting_Formulas - Quick...

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Quick Reference to Managerial Accounting Formulas Basic Income Statement Sales - Variable Cost --------------------- Contribution Margin - Fixed Cost --------------------- Profit Sales Revenue = Variable Costs + Fixed Costs + Profit S = VC + FC + P To breakeven (P = 0): S = VC + FC Contribution Margin CM = S - VC CM - FC = P CM ratio = CM per unit / Sales Price per unit Breakeven and Profit Planning Breakeven in units = FC / CM per unit Breakeven in dollars = FC / CM ratio Breakeven in dollars = Breakeven in units * Sales Price per unit Target Profit point in units = (FC + P) / CM per unit Target Profit point in dollars = (FC + P) / CM ratio Target Profit point in dollars = Target Profit point in units * Sales Price per unit Gross Margin Pricing Markup % = (P + S, G & A expenses) / Total Production Costs Gross Margin-based Price = Total Production Cost per unit (1 + markup %) Profit Margin Pricing Markup % = P / Total Costs & Expenses
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Quick_Reference_to_Managerial_Accounting_Formulas - Quick...

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