Key terms(2.2.3) Flashcards

1
Q

Break even definition

A

the level of output where the total revenue is equal to the total cost
fixed costs / unit contribution

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2
Q

Unit contribution definition

A

selling price - variable cost per unit

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3
Q

Margin of safety definiton

A

the difference between the current or planned level of output / sales and and the break even level of output

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