Unit 1 Equations Flashcards
1
Q
Profit
A
Total revenue - total costs
2
Q
Sales revenue
A
Quantity sold x selling price
3
Q
Total costs
A
Fixed costs + variable costs
4
Q
Break even
A
Fixed costs / (selling price per unit - variable costs per unit)
5
Q
contribution
A
selling price - variable costs
6
Q
margin of safety
A
selected level of business activity - break even output
7
Q
% change
A
( difference / original ) x100
8
Q
income elasticity of demand
A
% change in quantity / % change in income
9
Q
price elasticity of demand
A
% change in quantity / % change in price
