Break even Flashcards by Ethan Retish

Q

What is break even

A

when total revenue and costs are equal

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Q

total costs

A

variable costs + fixed costs

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Q

total revenue

A

level of output x price of product or service

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Q

level of output before breaking even

A

costs>revenue
making a loss

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Q

level of output after breaking even

A

revenue>costs
making a profit

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Q

Margin of Safety

A

Sales - break even output

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