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Basic Cost Equations

basic cost equations for BPA

QuestionAnswer
cost per unit fixed cost per unit + variable cost per unit
Total Cost CPU * Units Sold (US)
TFC (Total Fixed Cost) FCPU * US
TVC (total variable cost) VCPU * US
Revenue per unit amount of revenue obtained from each sale
TR (Total revenue) RPU * US
Contribution Margin per Unit (CM) RPU - VCPU
Breakeven Point (BEP) in units TFC / CM
BEP in dollars BeP * RPU
Economic Order Quantity SQRT[(2*Fixed Costs*Annual Usage)/(Carrying Cost*Unit Cost)]
Created by: hnmead
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