The variable cost margin is the difference between the sellling price and the

variable costs.

M/CV= turnover – variable cost

The margin rate is the ratio between the margin on variable cost and the turnover
expressed as a percentage.

TM/CV=M/CV *100 M/CV= CA*TM/CV

CA

2.3 The result

The result obtained by the campany during the production cycle by the distribution
of a product may be .

Result= M/CV-CF

2.4 Presentation of the differential result

A differential income statement is an account that distinguish between variable and

fixed expenses and calculates the variable cost margin and the result.

elements Costs and margin % of turnover

turnover 100%
-(net variable cost )

Margin on variable cost Tm/CV

-(fixed cost)

result

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