What assumption does this statement say "Break even is 54 units"?
What is the formula for contribution?
Fixed costs: = £30,000
Variable cost: = £200 per photo shoot
Forecast output (Sales): = 140 photo shoots
Selling price: = £1000 per photo shoot
What is the Total Contribution?
Simon has worked out the following figures for new Bobble Hats he is going to sell. He estimates that he can produce 20 000 hats a month with a selling price of £3.50. He expects the machinery costs to be £60 000 per annum, staff salaries are £72 000 per annum and raw materials cost £30 000 per month.
What is the margin of safety?
Which one of the following would be included in the calculation of total costs?
Gemima sells dolls houses at £50 each. Each dolls house costs her £32 to make. Her fixed costs are £2700. How many dolls houses must Gemima make in order to break-even?
Break-even = fixed cost
Selling price per unit - variable cost per unit
Gemima's dolls houses are very popular, she is considering setting her selling price to £55. If she does this what would happen to her break-even point?
Bart is planning on opening an ice cream parlour. After carrying out some research a friend has presented him with a break-even chart but he is unsure of what it means.
He has asked you to show him where the break-even point is.
Bart should break-even at 600 ice creams per month. He believes that he can sell 850 ice creams per month. What is his margin of safety?
Frederick is revising his formulae for a test on break-even. He has mixed up his revision notes. What is the formulas for Profit