E2 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 total variable costs (per unit)
5
Q
Profit (using contribution)
A
Contribution per unit x margin of safety
6
Q
Break even output
A
Total fixed costs / unit contribution
7
Q
Margin of safety
A
Actual sales - break even level of output
