breakeven Flashcards
1
Q
what is the margin of safety/mos
A
the difference of the break even output of the business and the actual output of the business
2
Q
what does it mean to break even
A
when a business’s total revenue is equal to total cost, the business is making neither loss nor profit
3
Q
what is contribution used for?
A
its calculated to find out how many goods need to be sold to cover all the business costs
4
Q
contribution formula?
A
selling price - variable cost
5
Q
break even and contribution formula?
A
fixed costs/contribution ( sp -vc)
6
Q
mos formula
A
actual output-break even output
