Accounting

Making financial decisions

Break-even definition

Break-even is defined as the selling point in dollars of ex packs of sushi beyond which all costs are covered by sales/total revenue, resulting in no profit or loss.

Margin of safety

Defined as the level of sales above break-even, which can be expressed as number of packs of sushi sold in dollars or as a percentage or

ex break-even will not be reached until sales will fall by 1000 packs (use context of question/calculation).

routine decision

strategic decision