Margin of Safety
Margin of Safety in a Nutshell The margin of safety is the amount by which actual or forecast sales exceed the break-even level of output. It shows how far sales can fall…
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11 min
Spec point: A-Level Edexcel – 2.2.3 Break-even
Every note that covers this specification point.
Break-Even Output
Break-Even Output in a Nutshell Break-even output is the number of units a business must sell for total revenue to equal total costs, so there is no profit and no loss. It…
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11 min
Break-Even Chart
Break-Even Chart in a Nutshell A break-even chart is a graph that plots fixed costs, total costs and total revenue against output to show where revenue overtakes costs. The point where the…
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11 min
Break-Even Analysis
Break-Even Analysis in a Nutshell Break-even analysis works out the level of output at which total revenue exactly equals total costs, so the business makes neither a profit nor a loss. It…
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12 min
Contribution Per Unit
Contribution Per Unit in a Nutshell Contribution per unit is the amount each item sold adds towards paying fixed costs, and once fixed costs are covered it adds to profit. It is…
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12 min
Total Contribution
Total Contribution in a Nutshell Total contribution is the money left from total sales after all variable costs are paid, which then contributes towards fixed costs. Anything left after fixed costs is…
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10 min
Contribution
Contribution in a Nutshell Contribution is the money left from sales after variable costs are paid, and it contributes towards fixed costs first. Once fixed costs are covered, every extra pound of…
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10 min