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Contribution and break-even output

Contribution and break-even output

A break-even chart compares total revenue with total costs. The break-even point is where the two lines cross, and the margin of safety is the output above this point.

Contribution per unit is the amount each sale leaves towards fixed costs after its variable cost has been paid. Calculate it using contribution per unit=selling price−variable cost per unit\text{contribution per unit} = \text{selling price} - \text{variable cost per unit}contribution per unit=selling price−variable cost per unit

1.3.2b Break even and margin of safety Lesson

  1. GCSE
  2. /Business
  3. /1.3.2b Break even and margin of safety

Step-by-step lessons on Edexcel GCSE Business 1.3.2b Break even and margin of safety. Each one builds up to exam-style questions. Start by mastering business terminology and the functional areas (marketing, finance, operations, HR) before moving on to the extended, evaluation-heavy questions that carry the most marks.

Lessons