Recent Calculations
This chart enables you to visualize the components of costs and revenue from a Contribution Margin point of view. In this view, the difference between the selling price and the variable cost of each successive unit sold is allocated to the payment of fixed costs until these costs are fully paid. Thereafter, the difference from each unit contributes to the profit.
Cost associated with producing an additional unit.
The sum of all costs required to produce any product. This amount does not change as production increases or decreases.
The number of units that are expected to be sold.
Price you will be able to receive per unit.
The product of units produced and variable unit cost (example 10 units at $5 variable cost produces a total variable cost of $50).
Sum of fixed costs and variable costs.
Product of price and expected sale unit sales (example 10 units at $10 equals $100 total revenue).
Total revenue minus total costs.
Number of units required to sell to make a profit of zero.