breakeven Flashcards
(7 cards)
1
Q
what is breakeven
A
the amount of products needed for a business to sell to make neither a profit of a loss
2
Q
break even poing
A
total costs are the same as total revenue
3
Q
break even output
A
level of output a business needs to produce so that total costs are exactly the same as total revenue
4
Q
what is contribution
A
the amount that each fixed unit produced ‘contributes’ towards the fixed costs of the business
5
Q
contribution formula
A
selling price - variable costs
6
Q
break even formula
A
fixed costs / contribution
7
Q
A
