Breakeven Flashcards
1
Q
Total Costs (TC)
A
FC + VC
2
Q
Fixed Costs (FC)
A
TC - VC
3
Q
Variable Costs (VC)
A
TC - FC
OR
No of units x cost p/u
4
Q
Cost p/u
A
VC/No of units
5
Q
Total revenue (sales)
A
No of units x sales p/u
6
Q
Selling Price (SP)
A
Total sales/no of units
7
Q
Profit or Loss
A
Total revenue - Total Costs
8
Q
Contribution
A
SP - VC
9
Q
Breakeven Point
A
FC/contribution
10
Q
Margin of Safety
A
Actual Sales rev - BEP Sales rev
Or
Actual Output - BEP Output
11
Q
Profit or loss at ??? Units
A
(Breakeven point - ???) x contribution
12
Q
Profit or loss at???
A
??? - BEP x contribution
13
Q
No of units required to earn a profit of ???
A
(??? + FC)/contribution
