Contribution margin formulas
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Break even point in dollars
(Total fixed costs) / (contribution margin ratio)
margin of safety in dollars
(actual or expected sales)-(break even sales)
Contribution margin ratio
(contribution margin) / (sales per unit)
break even with target net income in units
(fixed costs + target net income) / (contribution margin per unit)
break even with target net income in sales dollars
(fixed costs + target net income) / (contribution margin ratio)
margin of safety ratio
(margin of safety in dollars) / (actual or expected sales)
contribution margin
(sales per unit)-(variable costs per unit)
Break even point in units
(total fixed costs) / (contribution margin per unit)
