Business Studies 2.0 / 5 based on 1 rating ? Business StudiesGCSEEdexcel Created by: PortiaCreated on: 21-03-13 12:03 break-even Formla: Total revenue = quantity sold x average price 1 of 5 break-even Formula: Total Costs = fixed cost + variable cost 2 of 5 break-even Formula: Break-even = fixed costs ÷ sales revenue/price per item - variable cost per item 3 of 5 break-even Margin of Safety: - is the amount of outputbetween the actual level of output where profit is being made and the break-even lvel of output. 4 of 5 break-even A business might use BREAK-EVEN when: understanding the past (were decisions on price correct?) setting and achieving production targets launching a new product starting a new business developing a business plan 5 of 5
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