Contribution Income Analysis 

Use this spreadsheet to prepare a contribution margin income statement. The contribution margin is found by subtracting all variable costs from revenue (sales). Shaded cells have formulas…careful! After you enter your numbers check the BreakEven Chart below.  
Price Per Unit  $7.26  
Number of Units Sold  10000  
Total Sales  $72,600  100%  
Less: Variable Production Costs  $31,040  43%  
Less: Variable Selling Costs  $18,480  25%  
Total Variable Costs  $49,520  68%  $4.95  Per Unit  
Contribution Margin  $23,080  32%  
Less: Fixed Production Costs  $13,050  18%  
Less: Fixed Selling and Administrative Costs  $4,820  7%  
Total Fixed Costs  $17,870  25%  $1.79  Per Unit  
Income Before Taxes  $5,210  7%  $0.52  Per Unit  
BreakEven Analysis Chart  


BreakEven Point (units) =  7,743  BreakEven Point ($'s) = $56,212  
Total Fixed Costs (TFC) =  $17,870  Formulas:  
Variable Cost per Unit (VCU) =  $4.95  BEP (units) = TFC/(SPUVCU)  
Sales Price per Unit (SPU) =  $7.26  BEP ($'s) = BEP (units) * SPU  


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