The company C-V-P Equation
The company sells lawnmowers for $895 each The variable cost per lawnmower is $520. The company's monthly fixed costs are $84,500. Using C-V-P equation, compute the amount of profit the company will have for a month in which the company sells 375 lawnmowers.

C-V-P equation = sales - variable cost = contribution = fixed cost - profit
Sales = 895 * 375 = 335,625
Variable cost = 520 * 375 = 195,000
Fixed cost = 84,500
Profit = contribution - fixed cost
Contribution = 335,625 - 195,000 = 140,625
Profit = 140625 - 84500 = 56,125

($895 x 375 = $335,625) – ($520 x 375 = $195,000) - $84,500 = $56,125