business revenue and cost

what is the formula for break even

• fixed cost/(sales price per unit - variable costs per unit)

• revenue-costs

• current assets- current liabilities

• actual output - break even output

what is revenue

• an income earned over a period of time

• how much tax is given

• profits given each year

• losses the company has made

what is total costs

• surplus left from revenue after paying all costs

• the amount of money spent by a a firm or business

• how much they charge for their porducts

• the expenses involved in making a product

Calculation of revenue

• Selling price x quantity sold

• Selling price / quantity sold

• Quantity sold x profit

Direct costs are those that are easily attributable to the unit of output

• True

• false

What does contribution mean

• Adding value to the business

• When we Give towards something

• Overall profit

What is break even output

• the number of items that a business must sell to reach this point

• When a business over exceeds I’m the number of items sold

Formula for contribution per unit

• Selling price - variable costs

• Selling price x quantity sold

• Selling price - quantity sold

Those that are easily attributable to a unit of output e.g the amount of sugar weighed out when baking cakes…

Which ones is this?

• Semi-variable costs

• Direct costs

• Indirect/overhead costs

select two weaknesses of Break-even

• Even fixed costs can vary in reality Especially in the long run

• Integral part of a business plan when seeking to secure finance

• Calculate the level of profit or loss

• Ignores changes in variable costs or selling prices as items are bought or sold is larger quantities