GCSE Business Studies/Break-Even Analysis

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Sales Revenue[edit]

The sales revenue is how much a business makes by selling goods or providing a service. Sales revenue for a single product can be calculated like this:

sales~revenue = amount~sold * selling~price

Costs[edit]

Fixed costs[edit]

Fixed costs, also known as indirect costs or overheads, are costs that do not change depending on how much the firm sells. Some examples of fixed costs are:

  • Rent
  • Salaries
  • Load repayments

Variable costs[edit]

Variable costs, also known as direct costs, change directly depending on how much a firm produces. Some examples of variable costs are:

  • Raw materials
  • Electricity