COST SHEET UNDER MARGINAL COSTING
SALES | |
Less: Variable Cost | |
CONTRIBUTION | |
Less: Fixed Cost | |
PROFIT |
FORMULA’S:
Contribution = Sales – variable Cost (or) Contribution =Fixed Cost + Profit |
Profit Volume Ratio = Contribution/sales (or) Change in contribution/change in sales |
Break Even Point = Fixed Cost/Contribution (or) Fixed Cost/PV Ratio (or) Fixed Cost/ Contribution at 1% Capacity |
Contribution = Sales * PV Ratio |
Margin of Safety = Actual Sale – Break even sales (or) Profit/Contribution per unit (or) Profit/PV Ratio |
Sale Value at Desired Profit = Fixed Cost + Desired Profit PV Ratio |
Variable Cost Ratio = Change in Total Cost Change in Total Sales |
Variable Cost per unit = Change in total cost Change in output |
Contribution per unit = Change in Profit |
Net profit = MOS * PV Ratio |