When income is exactly equal to expenditure
showing neither loss or profit, company
Break even analysis breaks even if it doesn't make profit or loss,
to make profit income must be higher than
expenditure
Variable costs- costs that vary with
level of output, eg, raw materials,
more products business will make the
higher cost of raw materials
Fixed costs- do not vary with level of
output,
Costs
Semi-variable costs- mix of fixed and
variable, costs are fixed but if you
exceed extra costs will be added such
as phone bill
Total costs- amount of fixed and
variable costs added together
, Total revenue- total amount of money
coming in business from sales of
products or services
Selling price per unit- amount
customer pays per unit bought
Sales
Sales in value- total amount of sales
made expressed as monetary value
such as £
Sales in volume- amounts of sales
expressed as quantity
Occurs where profit is zero, total revenue and
Calculate Break even total costs must be the same- Total revenue =
Total costs
showing neither loss or profit, company
Break even analysis breaks even if it doesn't make profit or loss,
to make profit income must be higher than
expenditure
Variable costs- costs that vary with
level of output, eg, raw materials,
more products business will make the
higher cost of raw materials
Fixed costs- do not vary with level of
output,
Costs
Semi-variable costs- mix of fixed and
variable, costs are fixed but if you
exceed extra costs will be added such
as phone bill
Total costs- amount of fixed and
variable costs added together
, Total revenue- total amount of money
coming in business from sales of
products or services
Selling price per unit- amount
customer pays per unit bought
Sales
Sales in value- total amount of sales
made expressed as monetary value
such as £
Sales in volume- amounts of sales
expressed as quantity
Occurs where profit is zero, total revenue and
Calculate Break even total costs must be the same- Total revenue =
Total costs
