Break even Flashcards
1
Q
What is break even
A
when total revenue and costs are equal
2
Q
total costs
A
variable costs + fixed costs
3
Q
total revenue
A
level of output x price of product or service
4
Q
level of output before breaking even
A
costs>revenue
making a loss
5
Q
level of output after breaking even
A
revenue>costs
making a profit
6
Q
Margin of Safety
A
Sales - break even output
