Break - Even analysis and review.

To find out when business starts making a profit a ____________________________ is done.

• break-down analysis

• break-even analysis

• break-dance analysis

The point where the money going out is equal to money coming in, is known as the ______________________.

• break-even analysis

• break-down point

• break-even point

The ___________________________ can be used to calculate how many units a business needs to sell to cover its fixed costs.

• contribution per unit

• contribution unit

• contribution per point

Contribution per unit

= Selling price per unit – Variable cost per unit

• true

• false

_____________________

= Total fixed costs ÷ Contribution per unit

• Contribution per unit

• Break-even point

Contribution per unit

= ________________________ – Variable cost per unit

• selling price per unit

• selling price per item

• total fixed costs

·Selling price per candle = Dh100

·Variable cost per candle = Dh50

·Total fixed costs = Dh10,000

What is the contribution per unit?

• Dh50

• Dh60

• Dh70

• Dh80

·Quantity sold= 5,000

·Selling price per candle = Dh100

·Variable cost per candle = Dh50

·Total fixed costs = Dh10,000

·Contribution per unit = Dh50

What is the break-even point?

• 200 units

• 220 units

• 250 units

• 300 units

Break-even analysis is a technique used to find out where total cost equals total revenue.

• true

• false

The break-even point is the exact number where total ______ equal total revenue.

• costings

• cost

• costco

• costa del sol