| A | B |
|---|
| break even point | where sales revenue = total costs |
| fixed costs | costs that don't vary according to level of production |
| variable costs | costs that vary in direct proportion to level of production |
| selling price | the price goods are sold at |
| sales revenue | sales price x quantity sold |
| sales turnover | same as sales revenue |
| total costs | fixed costs + variable costs |
| expenditure | a purchase or cost - could be either a fixed or variable cost |
| margin of safety | the quantity sold above the break-even point where the business makes a profit |
