Formularium BUSECO, first year (book + notes + slides)

Formularium Buseco
Chapter 1
Total costs
Total cost = fixed + variable

Per Unit cost
Per Unit cost = Total cost / number of units produced

Chapter 2
BEP (general equation approach)
BEP = Profits = revenues – total costs = 0

BEP (unit contribution margin)
BEP = Fixed costs / unit contribution margin

Unit contribution margin
UCM = Sales price per unit – variable cost per unit

Profit (or net income)
Profit = total benefits – total costs

Target net profit
Target net profit = target sales – total cost

Units sold to hit the target net profit (formula)
Number of units sold to hit target profit = (target net profit + fixed cost) / net contribution
margin per unit

Units sold to hit the target net profit (incremental method, if profit = 0)
BEP = (0 + fixed costs) / unit contribution margin

Gross margin
Gross margin = total sales – COGS

Contribution margin
Contribution margin = total sales – all variable costs

Chapter 3
Mixed-cost function (linear-cost function)
Total costs = total fixed cost + variable cost per unit * cost-driver act in number of units




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