9C : Breakeven ( Not Fin )

Question 1

What is break-even?

Answer 1

Whereyour total revenue is the same us total costs

Question 2

What are some benefits of break-even

Answer 2

• help monitor the performance of a business

•Help with decision making in the future

•Once the break-even is met profit is started generate

Question 3

What are the problems of break-even

Answer 3

•It is assumed that all output is sold

• does not help if a business sells different products at different prices

Question 4

How can margin of safely be calculated

Answer 4

Actual sales - break-even output