break even analysis Flashcards
1
Q
total revenue
A
selling price x quantity sold
2
Q
total costs
A
total fixed costs + total variable costs
3
Q
profit
A
total revenue - total costs
4
Q
total contribution
A
total 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 (units)
A
total fixed costs / contribution per unit
8
Q
break even (sales value)
A
break even level of output x selling price per unit
9
Q
margin of safety (units)
A
actual sales - break even output
10
Q
margin of safety (value)
A
margin of safety (units) x selling price per unit
