Break even

Breakeven refers to the point where

• Total revenue equals total costs
• Total revenue is less than total costs
• Total revenue is half of total costs
• Total revenue exceeds total costs

Total revenue is calculated as

• Total revenue = Quantity of goods sold + Price per unit
• Total revenue = Quantity of goods sold * Price per unit
• Total revenue = Quantity of goods sold - Price per unit
• Total revenue = Quantity of goods sold / Price per unit

Variable costs are

• Costs that remain constant regardless of the level of production or sales.
• Costs that are not related to the level of production or sales.
• Costs that are incurred only once and do not change.
• Costs that change in proportion to the level of production or sales.

Profit is calculated as

• Total Revenue / Total Cost = Profit
• Total Revenue - Total Cost = Profit
• Total Revenue x Total Cost = Profit
• Total Revenue + Total Cost = Profit

An example of a fixed cost is

• Salaries for temporary employees
• Cost of raw materials
• Utilities for a manufacturing facility
• Rent for a manufacturing facility

An example of a variable cost is

• Cost of raw materials
• Cost of finished goods
• Cost of labor
• Cost of fixed assets

The formula for total cost is

• Total Cost = Fixed Cost - (Variable Cost per Unit * Number of Units)
• Total Cost = Fixed Cost * (Variable Cost per Unit + Number of Units)
• Total Cost = Fixed Cost / (Variable Cost per Unit - Number of Units)
• Total Cost = Fixed Cost + (Variable Cost per Unit * Number of Units)

The graph for fixed cost is

• Vertical line
• Curved line
• Horizontal line
• Dotted line

The margin of safety is

• The amount of profit made by a company
• The difference between fixed costs and variable costs
• Difference between actual or budgeted sales and the break-even point
• The total revenue earned by a company

Contribution in break even analysis can be defined as

• Amount of revenue that exceeds the total variable costs
• Amount of revenue that is unrelated to costs
• Amount of revenue that is less than the total variable costs
• Amount of revenue that equals the total fixed costs