Sales total $440,000 when variable costs total $352,000 and fixed costs total $80,000. The breakeven point in sales dollars is Formulas 1. Cost per equivalent unit = Costs for the Period / Equivalent Units of Production for the period 2. Conversion costs = Direct Labor + Manufacturing Overhead 3. Units completed/transferred out + Equivalent units of ending work in process: Equivalent units of production 4. Predetermined Overhead rate = Estimated Overheads / Estimated Allocation Base (Activity Level) 5. Applied Overhead = Predetermined Overhead Rate x Actual Allocation Base (Activity level) 6. Profit = (Price x Quantity) - (Variable Costs + Fixed Costs) 7. Unit contribution margin = Unit Selling Price - Unit Variable Cost 8. Contribution Margin Ratio = Unit Contribution Margin / Unit Selling Price 9. Break-even point (units) = Fixed Costs / Unit Contribution Margin 10. Break-even point (dollars) = Fixed Costs/CM Ratio 11. Margin of safety = Total sales - Break-even sales $440,000 $605,000 $400,000 $1,320,000