Break even

?
Break even equation
Fixed cost/selling price -variable cost per unit
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Contribution per unit
Selling price -variable cost per unit
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Margin of safety
difference between the actual output and the break even output Output - breakeven
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Contribution equation
Total sales - total variable cost
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total contribution
contribution per unit x quantity/units sold
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Profit
contribution -fixed cost
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What assumptions should you make to to make break even analysis
Break even is useful when selling one standardised product
All output is sold
Fixed cost don't vary with output
Selling price stays the same regardless of the amount produced
variable costs vary in direct proportion to output
7 of 7

Other cards in this set

Card 2

Front

Contribution per unit

Back

Selling price -variable cost per unit

Card 3

Front

Margin of safety

Back

Preview of the front of card 3

Card 4

Front

Contribution equation

Back

Preview of the front of card 4

Card 5

Front

total contribution

Back

Preview of the front of card 5
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