Scribd
Upload
423 views1 page

CVP Analysis Formulas and Calculations

This document outlines formulas for break-even point (BEP) analysis in cost accounting. It defines key terms like contribution per unit, profit volume ratio (PVR), margin of safety (MOS), and provides formulas to calculate: (1) BEP in units, (2) BEP in sales, and (3) contribution, total contribution, PVR, MOS, sales required for a desired profit, and profitability. The formulas allow accounting professionals to evaluate costs, sales levels, and profits.

Uploaded by

abhanidhara
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
423 views1 page

CVP Analysis Formulas and Calculations

This document outlines formulas for break-even point (BEP) analysis in cost accounting. It defines key terms like contribution per unit, profit volume ratio (PVR), margin of safety (MOS), and provides formulas to calculate: (1) BEP in units, (2) BEP in sales, and (3) contribution, total contribution, PVR, MOS, sales required for a desired profit, and profitability. The formulas allow accounting professionals to evaluate costs, sales levels, and profits.

Uploaded by

abhanidhara
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

CVP (Break-Even-Point) Analysis Formulas:

(1), BEP (Break-Even-Point) in Unit =Fixed Cost/Contribution per unit

(2), BEP (Break-Even-Point) in Sales/ Values =Fixed Cost/ PVR (Profit Volume Ratio)

(3), C (Contribution) per unit =SP-Variable Cost per unit

(3), Total Contribution =Total (Actual) Sales Total Variable Cost


=Fixed Cost + Profit or Fixed Cost Loss

(4), PVR (Profit Volume Ratio) =Changes in Profit/Changes in Sales * 100

=Contribution per unit/Selling price

=Total Contribution/Total Sales

=Profit/ MOS (Margin Of Safety)

` =Fixed Cost/BEP in Sales

(5), MOS (Margin Of Safety) =Total (Actual) Sales BEP in Sales

=Profit/PVR (Profit Volume Ratio)

(6), Sales required to earn desired profit =Fixed Cost + Profit/ PVR (Profit Volume Ratio)

(7), Profitability of Key (Scarce/Limiting) factor =Contribution per unit / Key factor in unit

(8), Profit =Total sales - Total Variable Cost - Fixed Cost

NJSMTI-Veraval_Chavda_Nagji

You might also like