equations

• total costs = total fixed costs + total variable costs
• revenue = price x quantity
• break even point in units = fixed costs / (sales price - variable cost )
• break even point in costs/revenue = break even point in units x sales price
• break even means the point at which the total revenue equals the total costs, so that the business is not making a profit or a loss
• margin of safety = actual or budgeted scales - break even sales
• margin of safety is the difference between the actual sales and the break even point.