Break Even

Which one is not included in the Break Even formula?

• variable costs per unit
• total fixed costs
• selling price per unit
• cost price per unit

What does break even point show?

• where a business is neither making a profit or loss
• how many items to make
• how much profit they're making
• where a business has more fixed costs than variable

How is break even point measures?

• dollars
• loss
• profit
• items

What assumption does this statement say "Break even is 54 units"?

• if we sell 55 we aren't making a profit
• if we sell 54 we begin to make a profit
• if we sell 55 we begin to make a profit
• if we sell 54 we are at break even point

What is the margin of safety?

• the margin between projected units and break even point units
• the margin between profit and loss
• the margin between units and sales
• the margin between each break even point

Which one is an example of a fixed cost?

• resources
• materials
• temporary wages
• rates

What is contribution margin?

• cost price - selling price
• fixed costs - variable costs
• selling price - variable cost
• selling price - cost price

Define variable costs.

• costs only related to making the product
• overhead costs
• combined costs
• costs that include marketing

Define mark up

• profit
• the cost price
• the selling price
• the added cost to cost price

What is one limitation to calculating break even?

• helps projected sales
• based on estimates
• based on multiple products
• considers stock wastage