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lecture notes from accounting module for university students mainly 1st year £4.49   Add to cart
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  7. Introduction to Accounting

Lecture notes

lecture notes from accounting module for university students mainly 1st year
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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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  • January 30, 2022
  • 7
  • 2021/2022
  • Lecture notes
  • Hassan elgendi
  • One class

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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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