When 25,000 units are produced, fixed costs are $24 per unit. Therefore, when 20,000 units are produced, fixed costs will 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 decrease to $20 per unit remain at $24 per unit total $480,000 0 increase to $30 per unit