Answers
Point where lines cross
Higher fixed costs raise break-even output
Break-even = Fixed costs / (Price - Variable cost)
Lower selling price raises break-even output
Revenue = Price x Quantity
Interest = Amount borrowed x Interest rate
Total costs line
Profit or loss = Revenue - Total costs
Lower fixed costs lower break-even output
Profit and loss areas
Total revenue line
Business rates on a shop
Salaries of office staff
Fixed costs line
Wages of production staff
Packaging
Raw materials
Variable costs = Unit variable cost x Output
Higher selling price lowers break-even output
Margin of safety
Higher variable costs raise break-even output
Total costs = Fixed costs + Variable costs
Rent for a factory
Delivery charges
Insurance on buildings