Studied by 3 people
level of output
Break- even: ________ at which total costs equal total revenue.
Contribution
________ per unit: selling price of a product minus direct costs per unit.
Margin of safety
________: amount by which the output level exceeds the break- even level of output.
amount of revenue
Break- even revenue: ________ needed to cover both fixed and variable costs so that the business breaks even.
Break-even
level of output at which total costs equal total revenue
The graphical method
the break-even chart
Margin of safety
amount by which the output level exceeds the break-even level of output
Contribution per unit
selling price of a product minus direct costs per unit
Total contribution
unit contribution x output
Break-even revenue
amount of revenue needed to cover both fixed and variable costs so that the business breaks even
Break-even
Level of output at which total costs equal total revenue
Margin of safety
Amount by which the output level exceeds the break-even level of output
Contribution per unit
Selling price of a product minus direct costs per unit
Total contribution
Unit contribution x output
Break-even revenue
Amount of revenue needed to cover both fixed and variable costs so that the business breaks even
