Economics
CVP and break-even
Contribution margin, break-even point and operating leverage.
Economics
Contribution margin per unit
CM = P − V→EconomicsTotal contribution margin
CM = R − VC→EconomicsBreak-even point in units
Q = F / (P − V)→EconomicsBreak-even revenue
R = F / CMR→EconomicsUnits for target profit
Q = (F + TP) / (P − V)→EconomicsMargin of safety
MOS = (R − BE) / R × 100%→EconomicsDegree of operating leverage
DOL = CM / OP→EconomicsContribution margin ratio
K = CM / R→EconomicsUnit contribution margin ratio
K = CMᵤ / P→EconomicsMargin of safety amount
MOS = R − Rᵦₑ→EconomicsMargin of safety in units
MOS = Q − Qᵦₑ→EconomicsProfit growth from operating leverage
Tₚ = Tᵣ × OL→EconomicsRequired revenue change
ΔR = ΔFC / K→