break-even output
What break-even output means in Business A-Level, as defined for AQA.
Definitions of break-even output
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Reference: AQA
The output in units at which the firm covers everything and earns nothing, found by dividing fixed costs by contribution per unit.
Fixed costs divided by contribution per unit, which machinery raises because it raises fixed costs.
Fixed costs divided by contribution per unit, measured in units, never in pounds.
Topics that use break-even output
- Analysing financial performance (AQA A-Level)
- Annex: quantitative skills in business (AQA A-Level)
- Making operational decisions to improve performance: increasing efficiency and productivity (AQA A-Level)
Related terms
- average rate of return
- contribution per unit
- gross profit margin
- margin of safety
- payback period
- qualitative factors
- analysis
- averages
Using break-even output in the exam
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