Ten Managerial Accounting Formulas
Variable cost per unit is the additional cost of producing a single unit. Volume is the number of units produced. Fixed cost is the total fixed cost for the period. Net income is just the difference between total sales and total cost: Net income = (Sales price x Volume) – Total cost . Page 3 of 5 Combining these two equations gives you the super-useful formula for understanding how volume affects profits: Not … ................
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