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
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/contribution per unit
8
Q
margin of safety (units)
A
actual sales- break even output
9
Q
margin of safety (value)
A
margin of safety (units) X selling price per unit
