What you will practise
Contribution per unit is selling price minus variable cost. Divide fixed costs by that contribution and round up when units cannot be fractional.
fixed_costs / (price - variable_cost)The syntax above is a guide. Read the data and each task to choose the right arguments for your formula.
3 exercises in this lesson
- Exercise 1 · answer in E10
Calculate whole units needed to cover fixed costs D7 using price C2 and variable cost D2; round up.
- Exercise 2 · answer in E10
Calculate the sales revenue at that whole-unit break-even volume.
- Exercise 3 · answer in E10
Calculate profit at the planned volume E7 using price C2, variable cost D2 and fixed costs D7.
Before you check your answer
- Keep the source data intact. Write your answer in the highlighted result cell. Changing a source value changes the question instead of solving it.
- Use the requested cells. Check the first and last row of a range and read its column heading. A plausible total can still come from the wrong data.
- Reference values that can change. A fixed number may match today's sheet. A cell reference keeps the formula connected when the source values change.
How the answer is checked
The workbook evaluates your formula against the requested result. It also checks the skill being practised and tests the formula with changed source data, so a fixed answer that happens to match is not enough.
Use progressive hints when you need help, then try the task again with fresh data. Correctly solving a step opens the next exercise.
The workbook opens with this skill selected. Work through the exercises at your own pace.