Lesson 2 Flashcards
(6 cards)
1
Q
Breakeven analysis
A
When total costs = total revenue
When a business has not made a profit or a loss
Shows a business
2
Q
Fixed costs
A
Money out of the business that’s not effected by the level of sales
3
Q
Variable costs
A
Money out of the business that can change depending on the level of sale.
4
Q
Breakeven formula
A
Fc. Fixed costs
————. Selling price per unit
Sc - vc Variable costs
5
Q
A
6
Q
Current ratio
A
Current assets
———————
