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lecture notes from accounting module for university students mainly 1st year $6.02   Add to cart
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  7. Introduction to Accounting

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lecture notes from accounting module for university students mainly 1st year
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  • Course
  • Introduction to Accounting
  • Institution
  • The University Of Bradford (UoB)

This document contains notes from the lecture from one of the lectures of the semester. It is clear to understand and will help build your knowledge of accounting.

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Document information

  • January 30, 2022
  • 7
  • 2021/2022
  • Class notes
  • Hassan elgendi
  • One class

Subjects

  • lecture
  • university
  • accounting
  • finance
  • notes

Written for

  • The University of Bradford (UoB)
  • The University of Bradford
  • Introduction to Accounting
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Week 19 - Accounting module


Break even = fixed costs / contributions per unit.
Contributions per unit = selling price per unit - variable costs per unit.


Margin of safety:

The margin of safety is calculated as follows:

Margin of safety = actual sales − break-even sales

For example, a business has a BEP of 100 products and has made 150
sales. Therefore:

Margin of safety = 150 – 100

= 50 products

This means the business is making profit on 50 of its items sold, and its
sales could fall by 50 items before the BEP were reached.

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