Break-even Flashcards
1
Q
what is fixed cost?
A
Costs that do not vary with output .
Fixed costs remain the same whatever the business produces 100 unit or no units.
2
Q
What is variable cost?
A
Cost that increase with the amount of products produced and sold.
3
Q
How do you find the total cost?
A
Fixed Cost + Variable Costs
4
Q
What is sales revenue?
A
Income generated from the sale of a product/ service.
5
Q
How do you calculate the sales revenue?
A
Sales Revenue = Price x Output
6
Q
What is the break-even point?
A
The break-even point is the point at which total cost equals total revenue.
