7.2. Production
- Syllabus
- 0264–2027–2028
- Topic
- 7.2
- Level
- —
7.2.1—Labour productivity
- Labour productivity = Output per period (units) / Number of employees = units per employee.
7.2.2—Total variable cost
- Total variable cost = Variable cost per unit × number of units.
7.2.3—Variable cost per unit
- Variable cost per unit = Total variable cost / Number of units.
7.2.4—Total cost
- Total cost = Total fixed costs + total variable costs.
7.2.5—Average cost
- Average cost = Total cost / Number of units.
7.2.6—Break-even output
- Break-even output = Fixed costs / Contribution per unit.
7.2.7—Contribution per unit
- Contribution per unit = Selling price per unit - variable cost per unit.
7.2.8—Margin of safety
- Margin of safety = Actual number of sales - break-even number of sales.
Objective notes
8 learning objectivesConceptIGCSE Business Studies