unit 3 topic 16

Question 1

break even

Answer 1

point where business is not making profit or loss

Question 2

variable costs

Answer 2

change with the level of output

Question 3

semi variable costs

Answer 3

part of costs stays the same and part varies in relation to business activity

Question 4

fixed costs

Answer 4

do not vary with output and remain the same

Question 5

total revenue

Answer 5

total amount of money coming in from sales
TR = SPPU x Q

Question 6

total sales

Answer 6

amount of sales made in a set time period - can be expressed in money or quantity

Question 7

selling price per unit

Answer 7

amount customer will pay for each uni purchased

Question 8

sales In value

Answer 8

sales expressed in monetary value

Question 9

sales in volume

Answer 9

sales expressed as quantity e.g. units

Question 10

contribution per unit

Answer 10

amount of money each sake contributes towards paying fixed costs

Question 11

total contribution

Answer 11

difference between total sales and total variable costs

Question 12

margin of safety

Answer 12

difference between actual output and break even output