Break Even Flashcards
(6 cards)
1
Q
contribution
A
what the business needs to achieve from selling in order to cover fixed cost to then make a profit
2
Q
break even point
A
when total revenue= total costs
so there are no profits or losses
3
Q
break even calculation
A
fixed costs/ selling price per unit- variable cost per unit
4
Q
contribution calculation
A
selling price per unit - variable cost per unit
5
Q
profit
A
total contribution- fixed costs
6
Q
margin of safety calculation
A
sales - break even level output
