breakeven analysis

Question 1

what is total revenue

Answer 1

this is the amount of income recieved from selling goods and services

Question 2

what is total cost

Answer 2

this is the amount of money spent by the business to make these goods and services

Question 3

what is fixed cost

Answer 3

This is the expenses the business incurs which do not change with output

Question 4

what is variable cost

Answer 4

This is the expenses which do change depending on the level of output

Question 5

what is the breakeven point

Answer 5

this is when the business doesn’t make a profit or a loss

Question 6

what is margin of safety

Answer 6

this is the difference between the no. of units sold and the no. of units at breakeven point