2.2.3 Breakeven Flashcards
1
Q
calculation of Contribution=
A
Total sales-total variable costs
2
Q
What is meant from the breakeven point?
A
The breakeven point refers to when the amount of profits is the same as the costs.
3
Q
what is the margin of safety?
A
The margin of safety is how much you need to get out of the breakeven point.
