CVP Analysis

Question 1

Breakeven Point (in units)

Answer 1

Fixed costs / Contribution margin per unit (CMU)

Question 2

Contribution Margin ratio

Answer 2

CM per unit / Selling price per unit

Question 3

Breakeven point (in $ Sales)

Answer 3

Fixed costs / Contributed margin ratio

Question 4

Sales volume (units) to earn desired profit

Answer 4

Fixed costs + Desired profit before tax / Contribution margin per unit

Question 5

Margin of Safety

Answer 5

Expected sales volume less Breakeven volume / Expected volume of sales