Business Finance - Unit

What is the equation for Total revenue in Break-even analysis?

• Selling price x quantity sold

• Fixed cost x quantity sold

• Variable cost + Fixed cost

• Selling price - Variable cost

What is the equation for Total costs in Break-even analysis?

• Fixed costs + total variable costs

• Fixed costs - total variable costs

• Total variable costs - fixed costs

• Fixed costs x total variable costs

What is the equation for Profit in Break-even analysis?

• Total revenue – total costs

• Total costs – total revenue

• Total revenue + total costs

• Total costs / total revenue

What is the equation for Total contribution in Break-even analysis?

• Sales revenue – total variable costs

• Total fixed costs – total variable costs

• Sales revenue – total fixed costs

• Total costs – total variable costs

What is the equation for Contribution (per unit) in Break-even analysis?

• Selling price – variable costs per unit

• Fixed costs + variable costs per unit

• Selling price + fixed costs per unit

• Variable costs per unit – selling price

What is the equation for Profit (using contribution) in Break-even analysis?

What is the equation for Break even point in Break-even analysis?

• Fixed costs / (selling price – variable costs) or Fixed costs / contribution per unit

• Variable costs / (selling price – fixed costs)

• Total revenue / total costs

• Selling price / variable costs

What is the equation for Break even output in Break-even analysis?

• Actual output – break even output, or: Annual sales – break even level of output

• Fixed costs / Contribution per unit

• Total revenue = Total cost

• Variable cost per unit x Number of units sold

What is the equation for Gross profit margin in Measuring Profitability?

What is the equation for Mark-up in Measuring Profitability?

• (Gross profit / cost of sales) x 100

• (Net profit / sales) x 100

• (Cost of sales / gross profit) x 100

• (Gross profit / sales) x 100