Ch 4 · Marginal Costing & CVP Analysis

🧮 Formula sheet

1. 1.Contribution = Sales − Variable Cost
2. 2.P/V Ratio = (Contribution / Sales) × 100
3. 3.BEP (units) = Fixed Cost / Contribution per unit
4. 4.BEP (₹) = Fixed Cost / P/V Ratio
5. 5.Margin of Safety = Actual Sales − BEP Sales
6. 6.Required Sales for Target Profit = (Fixed Cost + Target Profit) / P/V Ratio