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break even
Essay specific features
Written by:
John R
Date added:
February 14, 2014
Level:
University
Grade:
A
No of pages / words:
5 / 1202
Was viewed:
9093 times
Rating of current essay:
Essay content:
To work out the break even point of a business you need 3 important components which are:
1. Fixed costs, which are not usually associated with production- these are costs that are at a set price and will not change if income is high or low e.g. Rent and insurance.
2. Variable costs- these are costs that change depending on amount of use and output of sales and the capacity of production e...
displayed 300 characters
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Variable costs- these are costs that change depending on amount of use and output of sales and the capacity of production e.g. Electricity, parts and materials.
The fixed costs and the variable costs amount to the total costs.
3. Selling price- The price at which they are going to sell their product or service...
displayed 300 characters
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