Unit 3 formulas 2.0 / 5 based on 1 rating ? Business StudiesGCSEEdexcel Created by: ChristieCreated on: 15-05-13 13:48 Formula for breakeven fixed costs / contribution per unit = number of units required to breakeven 1 of 8 Contribution per unit sales price per unit - variable cost per unit 2 of 8 Profit formula total contribution - total fixed costs 3 of 8 Total contribution formula contribution per unit x number of units sold 4 of 8 Formula for margin of safety current or forcast units sold - breakeven units sold 5 of 8 Breakeven is the point at which... total output = total costs 6 of 8 What does the margin of safety Shows vunerability of sales 7 of 8 What could cause a drop in sales (3 reasons) Poor economic climate. New competitor. Change in fashion/taste. 8 of 8
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