Formulas for Calculations
The list provides you with all the 20 key calculations you need for the Unit 3 exam on
Thursday 16th May 2024.
1. Total revenue
Total revenue = quantity sold x selling price
2. Total costs
Total costs = fixed costs + total variable costs
3. Contribution per unit
Contribution per unit = selling price – variable cost per unit
4. Break-even point
Break-even point = fixed costs / contribution per unit
5. Margin of safety
Margin of safety = actual sales in units – break-even point
6. Gross profit
The list provides you with all the 20 key calculations you need for the Unit 3 exam on
Thursday 16th May 2024.
1. Total revenue
Total revenue = quantity sold x selling price
2. Total costs
Total costs = fixed costs + total variable costs
3. Contribution per unit
Contribution per unit = selling price – variable cost per unit
4. Break-even point
Break-even point = fixed costs / contribution per unit
5. Margin of safety
Margin of safety = actual sales in units – break-even point
6. Gross profit
