Unit 4

• personal scanner accessory: a device that allows you to scan documents and photos directly into your computer
• Gross earnings are the total amount of money earned by an employee in a year.
• earnings before interest and taxes (EBIT) is the amount of profit before interest and taxes
• Net income is the amount of profit or loss after deducting all expenses from revenue.
• Net cash burn is the cash used by a business in a period of time.
• Survival breakeven analysis: A method of calculating the break-even point for a business.
• EBDAT(Earnings before depreciation, amortization, & taxes) = Revenue - Variable costs - cash fixed costs
• Revenues = VC + CFC
• Ratio of variable costs (VC) to revenues (R) is a constant (VC/R) and is called the variable cost revenue ratio (VCRR)
• Break-Even Point (BEP): The level at which total revenue equals total costs, resulting in zero net income.
• Fixed Cost Coverage Ratio (FCCR): The number of units needed to cover fixed costs.
• Survival revenues (SR)=VC+CFC
• SR = CFC / (1-VCRR)