Break-even analysis

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Created by
emmy

Cards (12)

  • Break-even formula
    Fixed costs / (selling price per unit - variable cost per unit)
  • BE point
    Where TR and TC lines cross
  • BE output
    Number of products required to break even
  • Contribution per unit
    Selling price - variable cost per unit
  • Total contribution
    Contribution per unit x no of units sold
  • Margin of safety
    Actual sales - BE
  • Left of BE triangle
    Loss
  • Right of BE triangle
    Profit
  • When the selling price increases…
    BE decreases, MOS increases :)
  • When the selling price decreases…
    BE increases, MOS decreases :(
  • When costs increase…
    BE increases, MOS decreases :(
  • When costs decrease…
    BE decreases, MOS increases :)