C/S ratio calculationForums › FIA Forums › MA2 Managing Costs and Finance Forums › C/S ratio calculationThis topic has 2 replies, 2 voices, and was last updated 1 year ago by Huzaifabutt3g.Viewing 3 posts - 1 through 3 (of 3 total)AuthorPosts April 14, 2024 at 2:02 am #703878 Huzaifabutt3gParticipantTopics: 6Replies: 4☆A company expected to sell 20000 units of a single product in a period at Sale price is $35 per unit. The fixed cost in the period are expected to total $245000. What is the contribution to sale ratio is required to achieve Breakeven? April 14, 2024 at 3:36 pm #703893 Ken GarrettKeymasterTopics: 10Replies: 10579☆☆☆☆☆To break even the company must earn a contribution of 245,000 so as to draw level with the fixed costs.If 20,000 units are to be sold this means 245/20 = 12.25 contribution per unit.SP per unit = 35 Contribution/unit = 12.25So, C/S ratio = 12.25/35 = 0.35, or 35%. April 15, 2024 at 2:21 pm #704075 Huzaifabutt3gParticipantTopics: 6Replies: 4☆Thank youAuthorPostsViewing 3 posts - 1 through 3 (of 3 total)The topic ‘C/S ratio calculation’ is closed to new replies.