Break Even

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Break Even : 

Break Even The break even point is the level of output where a firm will just cover its costs. To calculate this we need to know the revenue for the year (turnover) and the fixed, variable and total costs. TASK: How do we calculate turnover, total costs and profit?

Calculating Break Even : 

Calculating Break Even

Break Even Graph : 

Break Even Graph

Task : 

Task

Margin of Safety : 

Margin of Safety The margin of safety is the number of products sold above the break even point. So if a company breaks even selling 580 products a week, but they actually sell 700 products, their margin of safety is 120. Calculate the margin of safety on your graph if output is 700.