# C_V_P ANALYSIS

Get Started. It's Free
C_V_P ANALYSIS

## 1. Contribution Margin (CM)

### 1.1. The difference between Total revenue and Variable costs

1.1.1. CM= Total revenue- Variable costs

1.1.2. CM(per unit)= Sale price (per unit)- Variable cost (per unit)

1.1.3. CM ratio = CM/ Total revenue

1.1.4. CM ratio (per unit)= CM(per unit)/ Sale price (per unit)

### 1.2. Symbols:

1.2.1. Saleprice (P)

1.2.2. Variable cost (V)

1.2.3. Fixed cost (F)

1.2.4. Quantity (Q)

## 2. Contribution Income Statement

### 2.1. Find out

2.1.1. Step 1: Total sale (PxQ)

2.1.2. Step 2: Variable cost ( VxQ)

2.1.3. Step 3: Contribution margin Qx(P-V)

2.1.4. Step 4: Fixed cost (F)

2.1.5. Step 5: Net income [Qx(P-V)]-F

## 4. Break even point

### 4.1. The break-even point (BEP)represents the sales amount—in either unit (quantity) or revenue (sales) terms—that is required to cover total costs, consisting of both fixed and variable costs to the company

4.1.1. In unit sales (Qbep)

4.1.1.1. Qbep= F/(p-V)

4.1.2. In sales dollar( TRbep= PxQbep)

## 6. Schedule of Cost of Goods Manufactured

### 6.1. Find out

6.1.1. Step 1: Direct material=[ Begin of raw material+Purchased material]- Ending raw material

6.1.2. Step 2: Cost of Goods Manufactured = Begin of Work in process+ Total manufactoring costs - Ending of Work in process