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

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

Contribution per unit

= Selling price per unit – Variable cost per unit

_____________________

= Total fixed costs ÷ Contribution per unit

Contribution per unit

= ________________________ – Variable cost per unit

·Selling price per candle = Dh100

·Variable cost per candle = Dh50

·Total fixed costs = Dh10,000

What is the contribution per unit?

·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?

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

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

Contribution per unit is the amount of money each unit contributes towards _______ costs.

Fixed costs are costs that remain the same regardless of how many products a business produces.

_______________ costs are costs that change based on how much of a product is used or produced.

Total cost is the combination of all fixed and variable costs.

The ____________ cost is the total cost of production divided by total output.

•rent

•internet

•insurance

•salaries

•loan repayments

These are examples of what costs?

Raw materials, electricity, delivery are all examples of what costs?

•Profit/Loss:

Sales revenue gives us what cost?

(Total cost ÷ Number of units)

This formula is used to calculate which costs?