Break even analysis Flashcards by Jasmine Keeley | Brainscape

Q

Equation for total revenue

A

Selling price x quantity

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Equation for Break even

A

Fixed costs / contribution per unit

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Equation for profit

A

Revenue - total costs

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

2 advantages of break even

A

Shows the revenue a business will make.

Can persuade investors in financing

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

2 disadvantages of break even

A

Time consuming

Variable costs change

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Equation for total costs

A

Fixed + variable

How well did you know this?

1

Not at all

2

3

4

5

Perfectly