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High Low Method to separate fixed cost from variable cost Calc Varibable cost per unit = change in ttl cost / change in volume of activity... calc ttl fixed costs = ttl mixed cost - ttl variible cost...ttl mix cost = varible cost per unit x number of units + ttl fixed cost
Break Even Income statement approach Sales rev -variable cost - fixed costs = operating income
Contribution margin approach to break even Sales Rev - Variablecosts= Contribution margin. - Fixed costs = operating income. Unit Sold = fixed costs + op income / Contrib. Margin per unit
How much to sell to earn a profit Target sales in dollars = fixed cost + op. income / contrib margin ration.
Created by: Lonann