Break Even Analysis 0.0 / 5 ? Applied BusinessBreak Even ASOCR Created by: Georgia LouCreated on: 22-04-14 14:13 562431 Across 1. Target Profit Output = Selling Price - Variable Costs (6, 6, 6) Down 2. Expected Output - Break Even Output (6, 2, 6) 3. The point where a firm makes neither a profit or a loss || Where the total revenue meets/equals to the total cost (5, 4) 4. BreakEvenOutput = Fixed Cost / Contribution per unit (5, 4, 7) 5. Can predict profit || Easy and quick to calculate || Can calculate the amount of sales you need to meet your target (9, 2, 5, 4) 6. Contribution = Selling Price - Variable Costs (12, 3, 4)
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