Business Studies

HideShow resource information
  • Created by: Portia
  • Created 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

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all resources »