break even Flashcards
(5 cards)
1
Q
what does break even mean
A
when the business generates just enough revenue to cover its total costs
2
Q
how do you work out unit contribution
A
unit contribution = selling price - variable cost
3
Q
how do work out the total contribution
A
total contribution = total revenue - total variable cost
4
Q
how do you work out the break even output
A
break even output = fixed cost/contribution
5
Q
what does contribution mean
A
the amount of money left over after variable costs have ben subtracted from revenue
