1) What is the margin of safety? a) The point at which a TR=TC b) SR x amount sold c) Current output - be output d) FC+VC 2) If a business is producing 3,000 units and the break even output is 1,000 units, what is its margin of safety? a) 2000 units b) 1000 units c) 500 units d) 200 units 3) Calculate break even if fixed costs are £10,000, SP is £6 and VC oer unit is £1. a) 3000 units b) 2000 units c) 1000 units 4) Calculate unit contribution if SP per unit is £10 and VC is £2 a) 5 b) 2 c) 8 d) 10 5) What is the formula for break even? a) TR-TC b) FC/UC c) Current output-be output d) FC+VC 6) What is the SR if you sell 100,000 boxes of chocolates at £10 a) £1,000,000 b) 500,000 c) 100,000

Break even

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