Breakeven Charts (AQA A-Level Business): Flashcards
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10 cards from this deck
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Practise the cards
10 cards from this deck
Breakeven chart definition
Breakeven chart definition
Shows when total costs equal total revenue
Breakeven point
Breakeven point
Output where business makes neither profit nor loss
Fixed cost line shape
Fixed cost line shape
Horizontal line parallel to x-axis
Variable cost line starting point
Variable cost line starting point
Starts from origin (0,0)
Total cost formula
Total cost formula
TC = FC + VC
Sales revenue line starting point
Sales revenue line starting point
Starts at origin (0,0)
Where breakeven point occurs on chart
Where breakeven point occurs on chart
Where sales revenue line crosses total cost line
Margin of safety
Margin of safety
Difference between SOP and breakeven output
How to measure profit/loss on chart
How to measure profit/loss on chart
Vertical distance between SR and TC lines
Breakeven chart axes
Breakeven chart axes
X-axis: output (units), Y-axis: costs/revenue (£)