Equations derived from marginal cost statements

From the marginal cost statement, the following equations may be derived:

Contribution = Sales – Variable cost

Contribution = Fixed cost + profit

Fixed cost = Contribution – profit

Fixed cost = Contribution + Loss

Contribution = fixed Cost + Loss

Sales = Variable cost + Contribution

Variable cost = Sales – contribution

Profit = Contribution – fixed cost

Loss = fixed cost – contribution

These equations may be used for solving problems of different types involving cost-volume – profit relationship.