break even analysis Flashcards
1
Q
total revenue
A
selling price x quantity sold
2
Q
total cost
A
fixed cost + variable costs
3
Q
total contribution
A
sales revenue - total variable costs
4
Q
contribution per unit
A
selling price - variable costs
5
Q
break even output
A
total fixed costs/unit contribution
6
Q
profit using contribution
A
contribution per unit x margin of safety
7
Q
margin of safety
A
actual sales - break even level of output
8
Q
profit
A
total revenue - total costs
