Summary business economics 2
© Nathalie Wittendorp
All formulas BE 2
Total costs = fixed costs + variable costs
Break even = F / P – V
Contribution margin = P – V
Safety margin = Actual output – breakeven / Actual output
Full unit costs = Fixed costs / Normal output – Variable costs / Actual output
Output level variance = (A – N) × F / N
Volume variance = (A – N) × F / N
Capacity utilization rate = A / available capacity × 100
Budgeted profit = transaction result – output level variance
Sales revenue = selling price × actual output
Mark-up rate method = indirect / direct costs
Budget variance = (Standard quantity × Standard product) – (Actual quantity × Actual product)
Efficiency volume variance = (Sq – Aq) × Sp
Price variance = (Sp – Ap) × Aq
Applied fixed costs = F / normal output level
fixed costs per product = F / normal output level
Profit = ( F + wanted profit ) / p – v
© Nathalie Wittendorp
All formulas BE 2
Total costs = fixed costs + variable costs
Break even = F / P – V
Contribution margin = P – V
Safety margin = Actual output – breakeven / Actual output
Full unit costs = Fixed costs / Normal output – Variable costs / Actual output
Output level variance = (A – N) × F / N
Volume variance = (A – N) × F / N
Capacity utilization rate = A / available capacity × 100
Budgeted profit = transaction result – output level variance
Sales revenue = selling price × actual output
Mark-up rate method = indirect / direct costs
Budget variance = (Standard quantity × Standard product) – (Actual quantity × Actual product)
Efficiency volume variance = (Sq – Aq) × Sp
Price variance = (Sp – Ap) × Aq
Applied fixed costs = F / normal output level
fixed costs per product = F / normal output level
Profit = ( F + wanted profit ) / p – v
