Revenue, costs, break even Flashcards
1
Q
Revenue
A
Price x number of units sold
2
Q
Costs
A
-spending that occurs to set up and run a business
3
Q
Profit
A
-the difference between total revenue and total costs, reward for risks taken by enterprise
4
Q
Fixed costs-
Variable costs-
A
-costs that do not vary with the output
-costs that very with the amount of output produced
5
Q
Break even
A
-when costs = revenue
6
Q
Break even point in units
A
Fixed costs/contribution
Contribution = (sales per unit - variable cost per unit)
7
Q
Break even point in costs/revenues
A
=Break even point in units x sales price
8
Q
Margin of safety
A
=output-break even sales
