break even 0.0 / 5 ? Business StudiesFinancial PlanningASAQA Created by: ellisha mannCreated on: 13-11-13 18:17 BREAK-EVEN CHART a line graph showing total revenues and total costs at all possible levels of output or demand from zero to maximum capacity 1 of 5 CONTRIBUTION total revenue less variable costs. the calculation of contribution is useful for businesses whih are responsible for a range of products 2 of 5 FIXED COSTS fixed costs are any costs that do not vary directly with the level of output, for exampe rent and rate 3 of 5 MARGIN OF SAFETY the amount by which current output exceeds the level of output necessary to break even 4 of 5 VARIABLE COSTS those costs hich vary directly with the level of output. they represent payments made for the use of inputs suh as labour, fuel and raw materials 5 of 5
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