Profit volume

Darrell
Darrell Just JoinedRegistered Posts: 2
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

Comments

  • King of the Mountains
    King of the Mountains Feels At Home Registered Posts: 66
    I think break even revenue is the fixed cost.:001_unsure:
  • MTX
    MTX Just Joined Registered Posts: 1
    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
    SandyHood Font Of All Knowledge Registered, Moderator Posts: 2,034
    Fixed costs = Break even revenue x PV ratio
    Sandy
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