Gcse Business 2 Flashcards
What is break even?
Break even is the number of products needed to be sold in order for the business to cover its costs, so that you are not making a profit of a loss.
What is the margin of saftey?
The margin of saftey is the difference between the actual level of sales/production and the break even point.
What is revenue?
The value of products sold.
What are fixed costs?
It does not vary with out put, it is a cost which stays the same no matter what your revenue is.
What is a variable cost?
A cost that changes from the ouput.
What is total cost?
It is fixed cost+variable cost.
What is intrest?
Amout loaned x(intrest%) ÷ 100
What is gross profit?
Revenue-Cost of sales(Variable cost)
What is net profit?
Gross Profit-Expenses(Fixed costs)
What is the Break Even Point formula?
Fixed costs ÷ (Selling Price – Variable Cost Per Unit).
