BMAT 220 _Online _Formula Sheet
Chapter 6
Total Revenue = Total Cost + Profit
TR = TC + PFT
Total Revenue = Volume x Unit Revenue
TR = (X) (P)
Total Cost = Fixed Cost + Total Variable Cost
TC = FC + TVC
Total Variable Cost = Volume x Variable Cost per Unit
TVC = (X) (VC)
Total Revenue = Fixed Cost + Total Variable Cost + Profit
TR = FC + TVC + PFT
Formula for finding profit when separating fixed and variable costs
PROFIT = (VOLUME X PRICE) – (VOLUME X VARIABLE COST PER UNIT) – FIXED COST
Formula for finding contribution margin per unit
CONTRIBUTION MARGIN PER UNIT = SELLING PRICE PER UNIT – VARIABLE COST PER UNIT
CONTRIBUTION RATE =
UNIT CONTRIBUTION MARGIN
UNIT SELLING PRICE
BREAK-EVEN VOLUME =
FIXED COST
UNIT CONTRIBUTION MARGIN
Chapter 5
AMOUNT OF DISCOUNT = RATE OF DISCOUNT * LIST PRICE
LIST PRICE =
AMOUNT OF DISCOUNT
RATE OF DISCOUNT
RATE OF DISCOUNT =
AMOUNT OF DISCOUNT
LIST PRICE
NET PRICE
=
LIST PRICE – AMOUNT OF DISCOUNT
NET PRICE FACTOR (NPF) =
100% - % DISCOUNT
NET PRICE FACTOR (NPF)
(1 – d)
NET PRICE =
=
where
d = rate of discount in decimal form
NET PRICE FACTOR (NPF) * LIST PRICE
NP = (1 – d) L
NET PRICE FACTOR
(NPF) FOR
=
A DISCOUNT SERIES
NPF FOR THE
NPF FOR THE
*
FIRST DISCOUNT
NET PRICE FACTOR FOR A DISCOUNT SERIES =
*...*
SECOND DISCOUNT
NPF FOR THE
LAST DISCOUNT
(1  d1 )(1  d 2 )(1  d 3 )...(1  d n )
NET PRICE =
NET PRICE FACTOR FOR THE DISCOUNT SERIES * LIST PRICE
NET PRICE =
(1  d1 )(1  d 2 )(1  d 3 )...(1  d n ) L
SINGLE EQUIVALENT RATE OF DISCOUNT FOR A DISCOUNT SERIES
= 1 – NPF FOR THE DISCOUNT SERIES
=1–
(1  d1 )(1  d 2 )(1  d 3 )...(1  d n )
SELLING PRICE = COST OF BUYING + EXPENSES + PROFIT
S = C+E+P
or
SELLING PRICE = COST OF BUYING + MARKUP
S=C+M
or
MARKUP = EXPENSES + PROFIT
M = E+P
or
RATE OF MARKUP BASED ON COST
=
Markup M

 100
Cost
C
RATE OF MARKUP BASED ON SELLING PRICE =
Markup
M

 100
Selling Pr ice
S
AMOUNT OF MARKDOWN = REGUAR SELLING PRICE – SALE PRICE
RATE OF MARKDOWN = AMOUNT OF MARKDOWN
PRICE TO BE REDUCED
SALE PRICE = NET PRICE FACTOR * REGULAR SELLING PRICE