In this section:
- Application: SuperClean International
- Application: La Douceur Pastry
- Application: Pizzeria Savourea
- Application: Supremo Electronics
- Application: At Jeanne's
- Application: TechnoFix Company
- Application: TechnoGadget
- Application: The Delights of Cheese
- Application: Lanvin Luxe Inc.
- Application: Bakery “Le Pain Doré”
- Application: “Fashion Elegance” Clothing
Application: SuperClean International
States :
SuperClean International is a company specializing in cleaning products for professionals and individuals. For the coming year, the company expects a turnover of €1, fixed costs of €500, unit variable costs of €000 per product and plans to sell 250 units of products.
Work to do :
1. Calculate the break-even point of SuperClean International (in euros and quantity).
2. What is the company's margin of safety?
3. If the company plans a 10% increase in fixed costs for next year, how would this affect the break-even point?
4. How would a 10% increase in unit variable cost affect the break-even point?
5. Suppose SuperClean International anticipates a 5% decrease in revenue next year, what would be the new safety margin?
Proposed correction:
1. The break-even point is calculated by the formula Fixed costs ÷ (1 – (Unit variable cost x Quantity sold / Turnover)). Therefore, the break-even point of the company SuperClean International will be €250 ÷ (000 – (1 x 0,80 / 1)) = €250.
2. The safety margin is calculated by the formula: (CA – SR) ÷ CA x 100. Therefore, the safety margin of SuperClean International is (€1 – €500) ÷ €000 x 1 = 000%.
3. If fixed costs increase by 10%, the new break-even point will be €275 (€000 + 250%) ÷ (000 – (10 x 1 / 0,80)) = €1
4. With a 10% increase in unit variable cost, the unit variable cost becomes €0,88. The new break-even point would therefore be €250 ÷ (000 – (1 x €0,88 / 1)) = €250.
5. If the turnover falls to €1 (€425 – 000%), the new safety margin will be (€1 – €500) ÷ €000 x 5 = 1%.
Summary of Formulas Used:
| Formulas | Description |
|---|---|
| Break-even point (BTP) = Fixed costs ÷ (1 – (Variable costs / Revenue))) | The break-even point gives the turnover to be achieved to cover all the company's expenses. |
| Turnover (TO) = Selling price x Quantity sold | Turnover represents the total sales of goods or services. |
| Variable costs = Unit variable cost x Quantity produced | Variable costs are costs that vary depending on the company's activity. |
| Safety margin = (CA – SR) ÷ CA x 100 | The margin of safety indicates how much revenue can decrease before the company reaches the break-even point. |
Application: La Douceur Pastry
States :
The pastry shop "La Douceur" is a company that sells homemade products. The company wants to know its profitability threshold to optimize its business practices.
Information available:
– The unit sale price of each cake: €15.
– Direct production cost (raw materials, etc.) for each cake: €5.
– Annual fixed charges (rent, electricity, salaries, etc.): €50.
– Quantity sold annually: 12 cakes.
Work to do :
1. What is the margin on unit variable cost?
2. What is the margin rate on variable costs?
3. What is the break-even point in units and in turnover?
4. What is the safety threshold in percentage and turnover?
5. If the company sells 13 cakes, what will be its profit?
Proposed correction:
1. The unit variable cost margin is the difference between the unit selling price and the unit production cost. Here, it is €15 – €5 = €10.
2. The margin rate on variable costs is calculated using the following formula: (Margin on variable cost per unit ÷ Unit selling price) x 100. Here, this rate is (€10 ÷ €15) x 100 = 66,67%.
3. The break-even point in units is calculated by dividing fixed costs by the unit variable cost margin. Here, the threshold is €50 ÷ €000 = 10 cakes.
The break-even point in terms of turnover is found by multiplying the break-even point in units by the unit sales price. Here, this gives: 5 cakes x €000 = €15.
4. The percentage safety threshold is calculated as follows: ((Quantity sold – Break-even point) ÷ Quantity sold) x 100. In this case, this gives (12 – 000) ÷ 5 x 000 = 12%. For the turnover safety threshold, simply multiply the percentage safety threshold by the company's turnover. Therefore, 000% x €100 = €58,33.
5. The company's profit is calculated by multiplying the quantity sold above the break-even point by the unit contribution margin. Therefore, (13 – 000) x €5 = €000.
Summary of Formulas Used:
| Formulas | Description |
|---|---|
| Margin on unit variable cost = Unit selling price – Unit production cost | Calculation of the margin on unit variable cost. |
| Variable cost margin rate = (Unit variable cost margin ÷ Unit selling price) x 100 | Calculation of the margin rate on variable costs. |
| Break-even point in units = Fixed costs ÷ Margin on unit variable cost | Calculation of the break-even point in units. |
| Break-even point in sales = Break-even point in units x Unit selling price | Calculation of the break-even point in terms of turnover. |
| Safety threshold in percentage = ((Quantity sold – Break-even point) ÷ Quantity sold) x 100 | Calculation of the safety threshold in percentage. |
| Safety threshold in turnover = Safety threshold in percentage x Company turnover | Calculation of the safety threshold in turnover. |
| Profit = (Quantity sold above break-even point) x Unit variable cost margin | Calculation of company profit. |
Application: Pizzeria Savourea
States :
The pizzeria Savourea offers its customers takeaway pizzas. The management wants to estimate the level of activity to be achieved to make the pizza sales business profitable. Here is some available information:
– The unit selling price of a pizza is €12.
– The unit variable cost is €5 per pizza.
– Annual fixed charges amount to €20.
Work to do :
1) What is the variable cost for 1000 pizzas sold?
2) How many pizzas must the pizzeria sell to cover its fixed costs?
3) What turnover must be achieved to reach this profitability threshold?
4) What does the break-even point represent for the company?
5) What could the company do to reduce its break-even point?
Proposed correction:
1) The variable cost for 1000 pizzas sold is €5 x 1000 = €5.
2) The break-even point in quantity is Fixed costs / (Unit selling price – Unit variable cost) = €20 / (€000 – €12) = 5 pizzas (rounded up to the nearest unit because you cannot sell a portion of pizza).
3) The turnover required to reach this break-even point is Break-even point in quantity x Unit sales price = 2 x €857 = €12.
4) The break-even point represents the level of activity (in quantity or turnover) from which the company covers all of its costs. This is therefore what it must at least reach in order not to make losses.
5) To reduce its break-even point, the company could seek to increase its unit selling price and/or reduce its unit variable costs and/or its fixed costs.
Summary of Formulas Used:
| Packages | Explanations |
|---|---|
| Variable cost for a quantity Q of products = Unit variable cost x Q | Calculation of the total variable cost based on the number of products sold. |
| Break-even point (in quantity) = Fixed costs ÷ (Unit selling price – Unit variable cost) | Calculation of the number of products to sell to cover fixed costs. |
| Break-even revenue = Break-even quantity x Unit selling price | Calculation of the turnover required to reach the break-even point. |
Application: Supremo Electronics
States :
Supremo Electronics is a company specializing in the sale of electronic products. They have just launched a new smartphone and want to analyze the profitability of the product. Here is the information available for the first quarter:
– Quantity of smartphones sold: 1000 units
– Sales price excluding tax (HT) per unit: €300
– Purchase price excluding tax (HT) per unit: €200
– Fixed costs (rent, salaries, insurance, etc.): €60000
The VAT rate is 20%.
Work to do :
1. Calculate the gross unit margin for each smartphone sale.
2. Calculate the margin rate.
3. Calculate the mark rate.
4. Calculate the turnover excluding tax (HT).
5. Calculate the break-even point in volume (number of smartphone units).
Proposed correction:
1. The gross unit margin is obtained by subtracting the purchase price excluding tax (PA HT) from the sale price excluding tax (PV HT). Therefore, Gross unit margin = PV HT – PA HT = €300 – €200 = €100.
2. The margin rate is calculated by dividing the gross unit margin by the purchase price excluding tax (PA HT) and multiplying the result by 100. Therefore, Margin rate = (Gross unit margin ÷ PA HT) x 100 = (€100 ÷ €200) x 100 = 50%.
3. The markup rate is calculated by dividing the gross unit margin by the selling price excluding tax (SVP HT) and multiplying the result by 100. Therefore, Markup rate = (Gross unit margin ÷ SVP HT) x 100 = (€100 ÷ €300) x 100 = 33,33%.
4. The turnover excluding tax (CA HT) is obtained by multiplying the sales price excluding tax (PV HT) by the quantity sold. Therefore, CA HT = PV HT x Quantity sold = €300 x 1000 units = €300000.
5. The break-even point in volume, i.e. the number of units to be sold to cover fixed costs, is obtained by dividing fixed costs by the gross unit margin. Therefore, Break-even point in volume = Fixed costs ÷ Gross unit margin = €60000 ÷ €100 = 600 units.
Summary of Formulas Used:
| SRI | Formulas |
|---|---|
| Gross unit margin | Gross unit margin = PV HT – PA HT |
| Margin rate | Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100 |
| Brand taxes | Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100 |
| AC excluding VAT | CA HT = PV HT x Quantity sold |
| Break-even point in volume | Break-even point in volume = Fixed costs ÷ Gross unit margin |
Application: At Jeanne's
Chez Jeanne is a company specializing in the sale of high-end cosmetics. In order to improve its financial performance, Jeanne, the general manager, wants to analyze the key figures of its operational management.
States :
The unit margin (excluding VAT) on the company's star product (Sensation Perfume) is €10, the VAT rate is 20%. Jeanne plans to sell 2000 units of this product during the year.
The unit variable charges amount to €5 per unit sold, while the annual fixed charges are €10.
Work to do :
1. Calculate the selling price excluding tax of Parfum Sensation, if it displays a margin rate of 20%
2. Determine the sales price including tax of Sensation Perfume.
3. What will be the total amount of variable costs if the sales target is reached?
4. What is Chez Jeanne’s forecast turnover for Sensation Perfume?
5. Determine the break-even point in terms of quantity and turnover.
Proposed correction:
1. Purchase price excluding tax of Sensation Perfume = Unit margin ÷ Margin rate = 10 ÷ 0,20 = €50
2. The sales price including tax is calculated as follows: Sales price excluding tax x (1 + VAT rate) = 50 x (1 + 20/100) = €60
3. The total amount of variable charges is: Unit variable charges x Quantity sold = 5 x 2000 = €10
4. The forecast turnover is: Quantity sold x Selling price excluding tax = 2000 x 50 = €100
5. The break-even point in quantity is given by: Fixed costs / (Unit selling price excluding VAT – Unit variable costs) = 10 ÷ (000 – 50) = approximately 5 units and the break-even point in turnover is: Break-even point in quantity x Selling price excluding VAT = 222 x 222 = approximately €50
Summary of Formulas Used:
| Calculation | Formulas |
|---|---|
| Selling price excluding tax | Unit Margin ÷ Margin Rate |
| Sales price including tax | PV excluding VAT x (1 + VAT rate) |
| Total variable charges | Unit variable charges x Quantity sold |
| Forecast turnover | Quantity sold x Selling price excluding VAT |
| Break-even point in quantity | Fixed charges ÷ (Unit selling price excluding tax – Unit variable charges) |
| Break-even point in turnover | Break-even point in quantity x Selling price excluding VAT |
Application: TechnoFix Company
States :
TechnoFix is a company that sells electronic products. It plans to launch a new product that will cost €50 per unit to produce. It plans to sell it at a price of €100 per unit. The company's fixed costs for launching this product are €10 and include advertising, rent for storage space, and sales team salaries. The company must pay 000% VAT on the sales price.
Work to do :
1. Calculate the tax-free selling price of each product.
2. Calculate the unit margin.
3. Calculate the margin rate.
4. Calculate the mark rate.
5. Determine the break-even point in number of products to sell.
Proposed correction:
1. The sales price excluding tax is calculated by subtracting the amount of VAT from the sales price, according to the formula: PV excluding tax = PV including tax ÷ (1 + VAT rate). In this case: PV excluding tax = 100 ÷ (1 + 0,2) = €83,33.
2. The unit margin is the difference between the sales price excluding tax and the purchase price excluding tax, according to the formula: Unit margin = PV excluding tax – PA excluding tax. In this case: Unit margin = €83,33 – €50 = €33,33.
3. The margin rate is calculated according to the formula: Margin rate = ((PV HT – PA HT) ÷ PA HT) x 100. In this case: Margin rate = ((€83,33 – €50) ÷ €50) x 100 = 66,67%.
4. The markup rate is calculated using the formula: Markup rate = ((PV HT – PA HT) ÷ PV HT) x 100. In this case: Markup rate = ((€83,33 – €50) ÷ €83,33) x 100 = 40%.
5. The break-even point is calculated by dividing fixed costs by the unit margin, according to the formula: Break-even point = Fixed costs ÷ Unit margin. In this case: Break-even point = 10 ÷ 000 = 33,33 products to sell.
Summary of Formulas Used:
| Formulas | Description |
|---|---|
| PV HT = PV TTC ÷ (1 + VAT rate) | Calculation of the Sale Price excluding taxes |
| Unit margin = PV excluding tax – PA excluding tax | Calculation of Unit Margin |
| Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100 | Calculation of Margin Rate |
| Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100 | Calculation of the Markup Rate |
| Break-even point = Fixed costs ÷ Unit margin | Calculation of the Break-Even Point |
Application: TechnoGadget
States :
TechnoGadget Company specializes in selling innovative technological gadgets and accessories. After a careful analysis of the fixed and variable costs associated with selling each unit of its flagship product – the technogadget deluxe, the company wants to conduct a break-even analysis.
Here is the basic information the company shared:
– The sales price excluding tax (HT) of each deluxe technogadget is €200.
– The purchase cost of the product is €70 excluding VAT.
– The company’s annual fixed costs amount to €200.
– The company is subject to a VAT rate of 20%.
Work to do :
1. Calculate the margin rate on the pre-tax purchase cost of technogadget deluxe and interpret the result.
2. Calculate the markup rate on the PV HT of the technogadget deluxe and interpret the result.
3. What is the amount of sales (net turnover) that the company must generate to reach the break-even point?
4. How many deluxe technogadgets must the company sell to break even?
5. If the company plans to sell 3000 deluxe technogadgets this year, will it be profitable?
Proposed correction:
1. Margin rate: ((€200 – €70) ÷ €70) x 100) = 185,71%. The margin rate indicates that the company makes a profit of 185,71% on the purchase cost excluding tax of each deluxe technogadget sold.
2. Markup rate: ((€200 – €70) ÷ €200) x 100) = 65%. The markup rate indicates that the company makes a profit of 65% on the net selling price of each deluxe technogadget sold.
3. The break-even point is the amount of sales needed to cover all costs. To calculate it, we take the fixed costs of €200 and divide them by the margin rate of 000%. The result is €185,71.
4. To determine the number of deluxe technogadgets to sell to reach the break-even point, divide the break-even point amount by the net selling price of each product, i.e. €107 ÷ €692,31 = 200 products.
5. If the company plans to sell 3000 products, it will generate a net sales of €600 (000 x €3000). Taking into account fixed costs (€200) and the total purchase cost of the products (€200 x 000 = €70), the company would make a profit of €3000. The company would therefore be profitable, because the profit is above the break-even point.
Summary of Formulas Used:
| Formulas | Explanation |
|---|---|
| Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100) | The margin rate measures the profit relative to the purchase price. |
| Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100) | The markup rate measures the profit relative to the selling price. |
| Break-even point (€) = fixed costs ÷ margin rate | The break-even point is the amount of sales needed to cover all costs |
| Break-even point (units) = break-even point (€) ÷ selling price excluding VAT | Number of units to sell to reach break-even point |
Application: The Delights of Cheese
States :
The company "Les Délices du Fromage" is a cheese shop located in the Paris region. The manager of the company would like to establish a plan to measure the financial performance of his establishment.
The cheese shop mainly sells three types of cheese: Camembert, Comté and Roquefort. Here is the information collected:
1) Unit purchase price excluding tax (PA HT): Camembert: €1,5/unit, Comté: €1/unit, Roquefort: €2/unit.
2) Unit sales price excluding tax (PV HT): Camembert: €2,5/unit, Comté: €2/unit, Roquefort: €3,5/unit.
3) Quantity sold: Camembert: 5000 units/year, Comté: 4000 units/year, Roquefort: 3000 units/year.
4) Annual fixed costs of the company: €18.
Work to do :
1) Calculate the unit margin for each type of cheese.
2) Calculate the company's overall margin.
3) Calculate the company's break-even point.
4) Calculate the margin and brand rates for each type of cheese.
5) Do you think the cheese factory manager manages his finances effectively?
Proposed correction:
1) The unit margin is equal to PV HT – PA HT.
– For Camembert: €2,5 – €1,5 = €1
– For Comté: €2 – €1 = €1
– For Roquefort: €3,5 – €2 = €1,5
2) The overall margin is calculated by multiplying the unit margin by the quantity sold.
– For Camembert: €1 x 5000 units = €5000
– For Comté: €1 x 4000 units = €4000
– For Roquefort: €1,5 x 3000 units = €4500
Total margin = €5000 + €4000 + €4500 = €13
3) The break-even point is calculated by dividing fixed costs by the margin on variable costs. Here, all our costs are fixed so: Break-even point = €18 ÷ 000 = €1.
4) The margin rate is ((PV HT – PA HT) ÷ PA HT) x 100).
– For Camembert: ((€2,5 – €1,5) ÷ €1,5) x 100 = 66,67%
– For Comté: ((€2 – €1) ÷ €1)x100 = 100%
– For Roquefort: ((€3,5 – €2) ÷ €2)x100 = 75%
The markup rate is ((PV HT – PA HT) ÷ PV HT) x 100).
– For Camembert: ((€2,5 – €1,5) ÷ €2,5)x100 = 40%
– For Comté: ((€2 – €1) ÷ €2)x100 = 50%
– For Roquefort: ((€3,5 – €2) ÷ €3,5)x100 = 42,86%
5) The manager effectively manages his finances since the break-even point is largely covered by the overall margin (€13 > €500). However, the margin rate for Camembert could be improved.
Summary of Formulas Used:
| Formulas | Explanation |
|---|---|
| Unit margin = PV excluding tax – PA excluding tax | The unit margin is calculated by subtracting the purchase price excluding tax (PA HT) from the sale price excluding tax (PV HT). |
| Overall margin = Unit margin x Quantity sold | The overall margin is calculated by multiplying the unit margin by the quantity sold. |
| Break-even point = Fixed costs ÷ Margin on variable costs | The break-even point is the turnover required for the company to cover all of its costs. |
| Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100) | The margin rate indicates the percentage of margin made on the purchase price excluding taxes. |
| Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100) | The markup rate indicates the percentage of margin made on the sales price excluding tax. |
Application: Lanvin Luxe Inc.
States :
Lanvin Luxe Inc. is a company specializing in the sale of luxury products. The company wants to improve its profitability management and needs to analyze its break-even point.
To do this, data is provided:
– Unit selling price excluding tax of each product: €1500
– Unit purchase price excluding tax of the products: €900
– Annual fixed charges: €100.
– Quantity sold annually: 120 products
Work to do :
1. Calculate the unit variable cost margin.
2. Calculate the variable cost margin rate.
3. Calculate the turnover to reach the break-even point.
4. Determine the number of products the company must sell to break even.
5. How many additional products must the company sell to increase its profit by €10?
Proposed correction:
1. The margin on unit variable cost is calculated by subtracting the unit purchase price excluding tax from the unit sale price excluding tax: €1500 – €900 = €600.
2. The variable cost margin rate is calculated by dividing the unit variable cost margin by the unit selling price excluding tax and multiplying by 100: (€600 ÷ €1500) x 100 = 40%.
3. The turnover required to reach the break-even point is calculated by dividing the annual fixed costs by the variable cost margin rate: €100 ÷ 000% = €40.
4. To determine the number of products that the company must sell to reach the break-even point, divide the break-even point turnover by the unit sales price excluding tax: €250 ÷ €000 = approximately 1500 products.
5. To determine how many additional products the company must sell to increase its profit by €10, divide the desired increase in profit by the unit contribution margin: €000 ÷ €10 = approximately 000 additional products.
Summary of Formulas Used:
| Formulas | Description |
|---|---|
| Margin on unit variable cost = Unit selling price excluding VAT – Unit purchase price excluding VAT | Allows you to calculate the margin on unit variable cost. |
| Variable cost margin rate = (Unit variable cost margin ÷ Unit selling price excluding VAT) x 100 | Allows you to calculate the variable cost margin rate. |
| Turnover to reach the break-even point = Annual fixed costs ÷ Variable cost margin rate | Allows you to calculate the turnover required to reach the break-even point. |
| Number of products to reach the break-even point = Turnover to reach the break-even point ÷ Unit sales price excluding VAT | Allows you to determine the number of products to sell to reach the break-even point. |
| Number of products to increase profit = Desired increase in profit ÷ Margin on unit variable cost | Helps determine how many additional products the company needs to sell to increase its profit. |
Application: Bakery “Le Pain Doré”
States :
The bakery "Le Pain Doré" sells pains au chocolat at a price of €1,20 per unit. The variable costs per pain au chocolat are €0,40. The total annual fixed costs of the bakery amount to €200.
Work to do :
1. Calculate the turnover if “Le Pain Doré” sells 300 pains au chocolat in one year.
2. Estimate annual variable costs.
3. Estimate the annual variable cost margin.
4. Determine the bakery's break-even point in quantity.
5. Evaluate the break-even point in terms of turnover.
Proposed correction:
1. The turnover is calculated by multiplying the sales price by the quantity sold. In this case, it is therefore €1,20 x €300 = €000.
2. Annual variable costs are obtained by multiplying the unit variable cost by the quantity produced. Therefore €0,40 x 300 = €000.
3. The contribution margin is calculated by subtracting variable costs from revenue. Thus, €360 – €000 = €120.
4. The break-even point in quantity is determined by dividing fixed costs by the unit margin on variable cost, which is calculated by subtracting the unit variable cost from the selling price. Since fixed costs are €200, the unit margin on variable cost is €000 – €1,20 = €0,40. Therefore, the break-even point in quantity is €0,80 ÷ €200 = 000 pains au chocolat.
5. The break-even point in terms of turnover is obtained by multiplying the break-even point in terms of quantity by the sales price, i.e. 250 x €000 = €1,20.
Summary of Formulas Used:
| Concept | Formulas |
|---|---|
| Turnover | Selling price x Quantity sold |
| Variable Charges | Unit Variable Cost x Quantity Produced |
| Margin on variable cost | Turnover – Variable costs |
| Break-even point (in quantity) | Fixed costs ÷ (Selling price – Unit variable cost) |
| Break-even point (in turnover) | Break-even point (in quantity) x Selling price |
Application: “Fashion Elegance” Clothing
States :
The clothing store "Fashion Elegance" recently opened its doors in the city center. For its first quarter of operation, here are some financial data:
– Fixed charges: €10
– Unit variable charges: €20 per item sold
– Sales price excluding tax: €50 per item
Work to do :
1. Calculate the break-even point in volume.
2. If the store sells 500 items, will it be profitable?
3. How many garments must the company sell to break even?
4. What will be the turnover to reach the break-even point?
5. What will be the profit if the store sells 600 clothes?
Proposed correction:
1. We will use the break-even formula: SR = CF ÷ (PV HT – CVU)
Substituting the given values, we get: SR = €10 ÷ (€000 – €50) = 20 items. This means that the store needs to sell 333,33 items to break even.
2. If the store sells 500 items, it will be profitable since 500 is greater than 334, the break-even point.
3. The store needs to sell 334 items to break even, as we have already calculated.
4. The turnover to reach the break-even point would be: 334 items * €50/item = €16
5. The profit if the store sells 600 items of clothing would be: (PV HT * quantity sold) – (CVU * quantity sold) – CF
That is: (€50 * 600) – (€20 * 600) – €10 = €000
Summary of Formulas Used:
| Concept | Formulas |
|---|---|
| Fixed Charges (FC) | Sum of constant expenses incurred by the operation of the business, regardless of the level of activity |
| Unit Variable Charges (CVU) | Costs that vary depending on the volume of activity of the company |
| Sale Price Excluding Tax (PV HT) | Initial price of the product/service without VAT |
| Break-Even Point (BEP) | CF ÷ (PV HT – CVU) |
| Concept | Formulas |
|---|---|
| Break even | SR = CF ÷ (PV HT – CVU) |
| Revenue to reach SR | CA SR = PV HT * SR |
| Profit | Profit = (PV HT * quantity sold) – (CVU * quantity sold) – CF |