Break Even Analysis

TOTAL CONTRIBUTION
=CONTRIBUTION PER UNIT x NUMBER OF ITEMS SOLD
1 of 5
CONTRIBUTION PER UNIT
=SELLING PRICE PER UNIT - UNIT VARIABLE COST
2 of 5
BREAK EVEN OUTPUT
=FIXED COSTS / CONTRIBUTION PER UNIT
3 of 5
MARGIN OF SAFETY
=CURRENT OUTPUT - BREAK EVEN OUTPUT
4 of 5
Break Even Point
Is the level of sales a business needs to cover their costs.
5 of 5

Other cards in this set

Card 2

Front

=SELLING PRICE PER UNIT - UNIT VARIABLE COST

Back

CONTRIBUTION PER UNIT

Card 3

Front

=FIXED COSTS / CONTRIBUTION PER UNIT

Back

Preview of the back of card 3

Card 4

Front

=CURRENT OUTPUT - BREAK EVEN OUTPUT

Back

Preview of the back of card 4

Card 5

Front

Is the level of sales a business needs to cover their costs.

Back

Preview of the back of card 5

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