break even

Question 1

formula for contribution per unit

Answer 1

selling price per unit- variable cost per unit

Question 2

formula for total contribution

Answer 2

contribution per unit x number of units sold

Question 3

break even formula

Answer 3

total fixed costs/contribution per unit

Question 4

margin of safety formula

Answer 4

actual output- break even output

Question 5

what is break even

Answer 5

point at which a businesses total revenue is equal to total costs, meaning there’s 0 loss or profit