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13 cards from this deck
Decision for an order outside usual routine
How much sales can fall before break-even
How much each unit sold contributes to covering fixed costs
When total revenue = total costs
Number of units produced at break-even point
Selling price - variable cost per unit
Contribution per unit x Number of units sold
Fixed costs / Contribution per unit
Actual output - Break-even output
Can examine scenarios to plan ahead & reduce risk
Gives targets, increases motivation & productivity
Assumes variable costs stay same (ignores economies of scale)
Assumes all units produced are sold
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