Contribution margin formulas

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)