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Question	Answer
What is the break even-point?	The point at where the total costs of the business is equal to the amount of money that has come into the business.
What are total costs?	The total amount of money coming out of the business from costs.
What is the purpose of break even analysis?	It allows you to decide how much your company is able to spend before making it impossible to break even, allowing your business to be able to succeed.
What are variable costs in a business?	All of the costs in a business that can change such as wages.
How do you work out profit?	total revenue - total costs = profit
What is the margin of safety?	The margin of safety is the difference between the target or actual sales and the break-even point.
What is sales revenue?	All the money you get from selling your products.
When do you get a loss?	When your total costs are higher than the total revenue.

Resource summary

	Created by Adam Molson almost 9 years ago