Formulas of C.V.

P Analysis
Contribution Margin =Total revenue -Total variable cost

Contribution Margin per Unit = Selling price*Number of unit sold

Contribution Margin percentage = Contribution Margin per Unit /Selling price

Operating Income= Revenue - Variable Cost -Fixed Cost Revenue = Selling Price*Quantity of unit Sold Variable Cost = Veriable cost per unit* Quantity of unit Sold Break even Point in Unit = Fixed cost/ Contribution Margin per Unit Break even Revenues = Break even Point in Unit* Selling Price Net Income =Operating Income -Income Taxes Target Net Income = Target Operating Income *(1- Tax Rate)

Target Operating Income = Target Net Income/ (1- Tax Rate) =

Quantity of Unit require to be Sold =Fixed cost + Target Operating Income / Contribution M

Margin of Safety (in dollars ) = Budgeted Revenue - Break even Revenues

Margin of Safety(in units) =Budgeted Revenue(units) - Break even Revenues(Units)

Margin of Safety Percentage = Margin of Safety (in dollars )/ Budgeted Revenue

Degree of Opertaing Leverage = Contribution Margin/ Operating Income

Gross Margin=

Sales - Cost of goods Sold

er Unit /Selling price

erating Income / Contribution Margin per Unit

even Revenues

eak even Revenues(Units)

)/ Budgeted Revenue

rating Income