31. 4 Break-even analysis Flashcards
1
Q
Break-even analysis
A
Uses cost and revenue data to determine the break-even point of production.
2
Q
Margin of safety
A
The amount by which the current output level exceeds the break-even level of output.
3
Q
Contribution per unit
A
The price of a product less the direct (variable) cost of producing it.
