A guide to Excel calculations for parasailing company performing contribution margin and breakeven analysis. Detailed analysis with correct calculations and formula.
Per unit Total Ratio
Sales 175 156,333 100%
Variable cost 130 116,133 74%
Contribution Margin 45 40,200 25.71%
Fixed Cost year 1 40,200 40,200
Net Income 0
Per unit Total Ratio
Sales 175 169,517 100%
Variable cost 133.5 129,317 76%
Contribution Margin 41.5 40,200 23.71%
Fixed Cost year 2 40,200 40,200
Net Income 0
Per unit Total Ratio
Sales 175 211,689 100%
Variable cost 133.5 161,488 76%
Contribution Margin 41.5 50,200 24%
Fixed Cost year 3 40,200 40,200
Net Income 10,000
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