Breakeven (2.2.3) Flashcards
1
Q
What’s the equation for Breakeven?
A
Breakeven= Fixed costs / Selling price-Variable Cost per unit
2
Q
What is the Selling Price-Variable Cost per unit also called?
A
Contribution per unit
3
Q
What’s the equation for Total Contribution?
A
Total Contribution= Contribution per unit x Quantity
4
Q
What’s the equation for Margin of Safety?
A
Actual sales- Break even point
5
Q
Where is the Breakeven Point on a graph?
A
Where the Total Revenue and Total Costs lines overlap
