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Really useful video, thanks. Just a tiny bit of feedback from a Maths teacher - use even simpler numbers in your table and the new formula for Profit will be more 'believable' in your words :P
Does anyone know why we can’t get the break even point by doing: Total cost/revenue per product sold It would be very helpful because I can’t think clearly
The margin of safety is the difference between the actual output (or sales) of a business and the break-even output. Margin of safety is expressed in terms of units.
Absolutely! A negative margin of safety implies that the business is making a loss. This is because the actual level of output is below the break-even output. So the business is not making enough contribution to cover its fixed costs
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ok
How do i find the current units sold to calculate margin of safety if i'm given only the sales price, fixed costs and variable costs?
Congrats, you're a hell of a teacher.
This finally helped me understand margin of safety, thank you🙏🏼
Great to hear!
Well indeed incredible expert god bless .
Excellent tutorial. Thank you
Sharing this with my classmates to understand these topics further. Thank you very much!
Thanks for sharing
@@tutor2u-official you're welcome!
Yeah..! Really a super energetic explanation and it's perfect...!!!very much clear understandable. Thank u and keep on
You're most welcome
that was really helpful to me.Thankyou very much sir.
So nice of you
Very well explained . Thank you
You are welcome
Now this was truly helpful! Thanks
Perfect! Really clear. Thank you
Oh thank you so much...you are a great teacher❤️
You are so welcome!
This was Great! Thanks :)
good, thank you soo much, I'm learning here
Christian!🙏
@@abeller518 God bless
is it customary to write the loss in brackets?
great lectures would love some graphs
Hello! Why does an increase in unit variable costs cause contribution per unit to fall and produce higher break-even level output?
Are there no AS revision guides
Is startup expenses included in fixed cost?
how did you get that $12 in the contribution per unit?
Thank you soooo much!!
No problem - glad you found it useful! Breakeven and the margin of safety is such a key topic!
Really useful video, thanks. Just a tiny bit of feedback from a Maths teacher - use even simpler numbers in your table and the new formula for Profit will be more 'believable' in your words :P
Great suggestion!
Thanks a Lot!!
Welcome!
Does anyone know why we can’t get the break even point by doing:
Total cost/revenue per product sold
It would be very helpful because I can’t think clearly
Oh nvm I think I know why. Break even is to find how many products I need to sell to cover the fixed costs
So the margin of safety in sales is margin of safety *contribution per unit?
its profit
The margin of safety is the difference between the actual output (or sales) of a business and the break-even output. Margin of safety is expressed in terms of units.
thanks for the vid but surely it’s 2083.3333333 so you would round down?
What is meant by breakeven output? Is that the same as breakeven point?
Yes - same thing
How can one turn FC into VC?
One example is for a business to use short term leases of equipment rather than buy them outright
Can u arrive at a negative margin of sales
Absolutely! A negative margin of safety implies that the business is making a loss. This is because the actual level of output is below the break-even output. So the business is not making enough contribution to cover its fixed costs
@@tutor2u-official okay thanks for the clarification 😊👏
Tension aguthu
Ama tension aguthu😅😅