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 costs
6
Q
Profit using contribution
A
Contribution per unit X margin of safety
7
Q
Break even output
A
Total fixed costs / unit of contribution
8
Q
Margin of safety
A
Actual sales- breakeven level of output
