Formulas Flashcards
1
Q
Fixed costs
A
Costs that are never change regardless of output
2
Q
Variable costs and formula
A
Costs that change in relation to output
TVC= VC X QUANTITY
3
Q
Total costs
A
Fixed costs plus variable costs
4
Q
Revenue
A
Selling price x quantity sold
5
Q
Profit
A
Money left over after paying expenses
REV - TC
6
Q
Total contribution
How can a business benefit
A
TR- TVC
Businesses can get an understanding of how much money is left over
7
Q
Contribution per unit
A
Price - VCPU
8
Q
Margin of safety
A
Actual sales - BEP
9
Q
Breakeven
A
FC / CPU
