Theme 2 - 2.2 and 2- 2.3 Costs and revenues Flashcards
1
Q
What is a fixed cost ?
A
Costs that don’t change as output changes.
2
Q
What is a variable cost ?
A
Costs that vary as output changes.
3
Q
How is sales revenue calculated ?
A
Price x Quantity sold.
4
Q
Where is the break even point ?
A
Total costs = Total revenue.
5
Q
How are total costs calculated ?
A
Total fixed costs + Total variable costs.
6
Q
How is contribution per unit calculated ?
A
Selling price - Variable cost per unit.
