Break even

break even

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  • Created by: megan
  • Created on: 16-05-14 08:45
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  • Break even
    • definition
    • Calculations
      • Fixed costs / cont. per unit
    • Break even chart
      • will show: total costs, fixed costs, variable costs, total revenue
    • Margin of safety
      • Calculations
        • Actual sales - break even level of sales
      • Definition
        • The point at which revenue outweigh total costs resulting in profit
    • Advantages
      • -shows bank you are organised    - stock control        - spot potential problems
    • Disadvantages
      • - only prediction -assumes all products are sold      - costs may change
  • Calculations
    • Actual sales - break even level of sales

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