Break Even analysis Flashcards
1
Q
Net Cash Flow
A
Total cash inflow - Total cash outflow
2
Q
Closing Balance
A
Opening balance + Net cash flow
3
Q
Total Revenue
A
Selling price x Quantity sold
4
Q
Total Costs
A
Fixed costs + Total variable costs
5
Q
Profit
A
Total revenue - Total costs
6
Q
Total Contribution
A
Sales revenue - Total variable costs
7
Q
Contribution Per Unit
A
Selling price - Variable costs
8
Q
Profit Using Contribution
A
Contribution per unit x Margin of safety
9
Q
Break Even Output
A
Total fixed costs / Unit contribution
10
Q
Margin Of Safety
A
Actual sales - Break even level of output
