Break-even Flashcards
1
Q
Revenue
A
Price x quantity sold
2
Q
Variable costs
A
Quantity sold x variable cost per unit
3
Q
Total costs
A
Fixed cost + variable costs
4
Q
Profit
A
Revenue - total costs
5
Q
Contribution per unit
A
Selling price per unit - variable cost per unit
6
Q
Total contribution
A
Contribution per unit x quantity sold
7
Q
Break even point
A
Fixed costs / (selling price per unit - variable cost per unit)
8
Q
Margin of safety
A
Actual sales - break even sales
