Break-even Flashcards
1
Q
What is a break-even point
A
The point at which a company has sold enough products or services to have covered all their costs
2
Q
What is the formula for break-even point?
A
Fixed costs
—————-
Sales- Variable costs
3
Q
What is the formula for selling point?
A
Sales revenue
———————
Output
4
Q
What is the formula for variable cost per unit?
A
Total cost - Fixed cost
——————————-
Sales revenue
5
Q
What are fixed costs?
A
Costs that always stay the same
6
Q
What are Variable costs?
A
Variable costs are costs that vary with output
7
Q
A
