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Costs contribution - PowerPoint PPT Presentation

Chapter 4

Chapter 4. Cost Volume Profit Analysis (CVP). Objectives. After studying this topic you should be able to : Understand the concept and terminology of CVP; Have a working knowledge of CVP calculations; Appreciate the usefulness of CVP to managers as a decision making tool; and

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BUSS1 Formula

BUSS1 Formula. Profit= Total revenue - Total cost Contribution= Selling price - Variable cost per unit Break-even = fixed cost/ contribution per unit Total Contribution = Contribution per unit x sales Revenue = Selling price x Quantity Market size = Price x Quantity

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Costs contribution - PowerPoint PPT Presentation

Chapter 4

BUSS1 Formula