Summary Cost volume profit formula

Contribution Margin (CM) per Unit: C M = Selling Price per Unit − Variable Cost per Unit CM=Selling Price per Unit−Variable Cost per Unit Contribution Margin Ratio (CMR): C M R = Contribution Margin per Unit Selling Price per Unit CMR= Selling Price per Unit Contribution Margin per Unit ​ Break-even Point in Units: Break-even Units = Fixed Costs Contribution Margin per Unit Break-even Units= Contribution Margin per Unit Fixed Costs ​ Break-even Point in Sales Dollars: Break-even Sales = Fixed Costs Contribution Margin Ratio Break-even Sales= Contribution Margin Ratio Fixed Costs ​ Target Profit in Units: Target Units = Fixed Costs + Target Profit Contribution Margin per Unit Target Units= Contribution Margin per Unit Fixed Costs+Target Profit ​ Target Profit in Sales Dollars: Target Sales = Fixed Costs + Target Profit Contribution Margin Ratio Target Sales= Contribution Margin Ratio Fixed Costs+Target Profit ​ Margin of Safety in Dollars: Margin of Safety = Actual Sales − Break-even Sales Margin of Safety=Actual Sales−Break-even Sales Margin of Safety Percentage: Margin of Safety % = Margin of Safety in Dollars Actual Sales × 100 Margin of Safety %= Actual Sales Margin of Safety in Dollars ​ ×100 This formula sheet provides a clear, quick-reference for students and professionals engaged in CVP analysis, making calculations more efficient and accurate.