Total Contribution = Profit Contribution = =

Contribution Per Unit Total Contribution Selling Price

x -

Slaes Volume Fixed Overheads Variable cost (D.M + D.L + V.E)

C/S Ratio

Total Contribution Total Sales Revenue Total Sales Revenue

OR Contribution per unit Selling price per unit = Total Cost

Breakeven point i.e. Profit = 0 Total Cost

= + = + = +

= + + + =

Direct Material Direct Labour Direct Expenses Prime Cost Variable Production Overhead Marginal Production Cost Fixed Production Overhead Total Production Cost Non-Production Overheads: Administration Selling Distribution Finance Total Cost Profit Direct Taxes Indirect Taxes (Adjusted) Selling Price

X X X XX X XX X XX X X X X XX X X X XX

Breakeven point in terms of number of units sold Fixed Cost Contribution per unit Breakeven point in terms of sales revenue Fixed Cost C/S Ratio Margin of Safety in terms of Units Budgeted Sales - Breakeven point in units

Margin of Safety in terms of %age of Budgeted Sales Budgeted Sales Breakeven Sales Budgeted Sales

Target Profit Sales volume to achieve a target profit Fixed Cost + Required profit = Contribution per unit