Profit volume

Darrell

Anybody out there any idea how you work out the total fixed costs when you only have the profit volume ratio, the unit selling price and the break even revenue for the year?

I need this urgently please if anybody can help

Thanks

King of the Mountains

I think break even revenue is the fixed cost.:001_unsure:

MTX

King of the Mountains wrote: »

I think break even revenue is the fixed cost.:001_unsure:

This is incorrect. The equation is:

Break Even Revenue = Fixed Costs / Profit Volume Ratio

Therefore, Fixed Costs = Break Even Revenue / Profit Volume Ratio

SandyHood

Fixed costs = Break even revenue x PV ratio