| BREAK EVEN |
|
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| SALES |
| LESS: VARIABLE COST / MARGINAL COST |
| CONTRIBUTION MARGIN |
| LESS: FIXED FOH |
| PROFIT |
|
|
| CONTRIBUTION MARGIN RATIO = CONTRIBUTION MARGIN / SALES *100 |
| BREAK EVEN SALES IN RS. = FIXED COST / CONTRIBUTION MARGIN RATION |
| BREAK EVEN SALES IN UNITS = FIXED COST / CONTRIBUTION MARGIN PER UNIT |
| MARGIN OF SAFETY = SALES - BREAK EVEN |
| MARGIN OF SAFETY RATIO = SALES - BREAK EVEN / SALES * 100 |
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