Break-Even Analysis Flashcards
1
Q
Total Revenue
A
Selling Price X Quantity Sold
2
Q
Total Costs
A
Fixed Costs + Total Variable Costs
3
Q
Profit
A
Total Revenue - Total Costs
4
Q
Total contribution
A
Sales Revenue - Total Variable Costs
5
Q
Contribution (per unit)
A
Selling Price - Variable Cost (per unit)
6
Q
Profit (using contribution)
A
Contribution per unit X margin of safety
7
Q
Break-Even output
A
Total Fixed costs / Unit Contribution
8
Q
Margin of Safety
A
Actual sales - Break-Even level of output
