- Revenue is the money received from sales, [price x units sold].
- Fixed costs do nto chang according to how much a bisinass sells eg/ rents.
- variable costs do vary directly with thw amount sold/ produced eg/ stocks [unit varible costs x units sold].
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- Total costs = [Fixed costs + Variable costs.]
- Break-even is where the total costs are the same as the total revenue. You are not making a profit or a loss.
- Profit = is when revenue is greater than the total costs.[ Revenue - costs]
- Loss total cost is greater than the revenue.
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