Break even Flashcards
what is the formula for break even point in units
fixed costs / contribution per unit
what are the 2 formulas for break even point in revenue
fixed costs / contribution to sales ratio or BEP in units x selling price per units
what is the margin of safety formula in units
budget - break even point in units
what is the formula for multi product breakeven in units
fixed costs/ weighted average unit contribution
what is the formula for multi product breakeven in revenue
fixed costs / weighted average C/S ratio
what is the C/S Ratio
contribution to sales
how to calculate CS ratio
total contribution/total sales
what is the formula for PED
% Change in demand/ % change in price
what is PED
price elasticity of demand
what kind of product is an inelastic product
weak relationship between price and demand (essential products)
how do you know if a product is inelastic
PED is less than 1
what is a for the linear demand formula
theoretical max selling price
what is b for the linear demand formula
change in price required to change demand by unit
what is P for the linear demand formula
selling price
what is Q for the linear demand formula
Quantity demanded by that price
