GCSE Business Studies/Break-Even Analysis
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Sales Revenue[edit | edit source]
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:
Costs[edit | edit source]
Fixed costs[edit | edit source]
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
- Loan repayments
Variable costs[edit | edit source]
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