GCSE Business Studies/Break-Even Analysis

From Wikibooks, open books for an open world
Jump to navigation Jump to search

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