1. Accounting and finance Break-even analysis

6. Drawing a break-even chart £ Quantity Fixed costs Total costs Sales revenue Break-even output Break-even sales break- even point at the break-even point, total sales = total cost (i.e. no profit or loss is made) Angle of Incidence Loss

8. The margin of safety x units Break-even output margin of safety

13. Important formula: Contribution PVR = X 100 Sales (Or) Changes in profit PVR = X 100 Changes in Sales

14. Fixed Expenses BEP (Volume) = PVR (or ) Fixed Expenses BEP (Unit) = Contribution per unit

15. Profit Margin of Safety = PVR (or) Present sales – Break even sales