Finance - Breakeven Flashcards
1
Q
What is break even?
A
The point at which the revenue and costs are the same, no profit and no loss, that is called the break even point
2
Q
What does FC stand for?
A
- Fixed costs
Costs that aren’t affected by quantity of good produced or sold
3
Q
What does VC stand for?
A
- Variable costs
Vary or change according to the level of work being done in the business
4
Q
What does TC stand for?
A
Variable + fixed costs
5
Q
What does TSR stand for?
A
- Total sales revenue
Number of units sold x sale price per unit
6
Q
What does TSR stand for?
A
- Total sales revenue
Number of units sold x sale price per unit
7
Q
What does SP stand for?
A
- Selling price per unit
Selling price of 1 unit
