Break even
break even
- 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
- Calculations
- 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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