quizz 14.12

The break even point

• Equalize fixed and variable costs

• Indicates the number of production units to sale in order to get positive benefit

• Equalize revenue to expenses

• Calculates the benefit of sales

Break even Point

• FIXED COST

  -----------

  Price x ud -

  Cost x ud

• VARIABLE COST

  -----------

  Price x ud -

  Cost x ud

• FIXED COST

  -----------

  Cost x ud -

  Price x ud

• TOTAL COST

  -----------

  Price x ud -

  Cost x ud

Wages are

• Benefit cost

• Fixed Cost

• Variable cost

• Income

The Break even point

• Shows how much we need to have benefit

• Is the point at which its sales exactly cover its expenses

• Is the point where sales are higher than expenses

• Is the point where sales are lower than expenses

Mortages o rents are

• Variable cost

• Income

• Benefit

• Fixed Cost

The cost per unit is

• Benefit

• Variable cost

• Fixed cost

• Total cost

Price of Product – Variable Costs =

• Break Even Point

• Fixed Costs

• Contribution Margin

• Benefit

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