Profit And Revenue Flashcards
1
Q
What is the definition of revenue
A
Revenue is the total value of all sales made by a business
2
Q
What is the equation for break even
A
Fixed costs divided by selling price - variable costs per unit
3
Q
What is the equation for profit
A
Revenue- total costs
4
Q
What is the definition of profit
A
The money you are left with once you have payed off all your total costs
5
Q
What is the margin of safety
A
The difference between the actual level of sales and the break even point
