Breakeven Charts (AQA A-Level Business): Quizzes
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Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does the breakeven point on a chart show?
What does the breakeven point on a chart show?
Where total costs equal total revenue
What is measured on the horizontal (x-axis) of a breakeven chart?
What is measured on the horizontal (x-axis) of a breakeven chart?
Output in units
How does the fixed cost line appear on a breakeven chart?
How does the fixed cost line appear on a breakeven chart?
Horizontal line parallel to x-axis
Where does the variable cost line start on a breakeven chart?
Where does the variable cost line start on a breakeven chart?
At the origin (0,0)
Where does the total cost line start on a breakeven chart?
Where does the total cost line start on a breakeven chart?
At the fixed cost level on y-axis
What is the margin of safety?
What is the margin of safety?
Difference between SOP & breakeven output
How should profit or loss be measured on a breakeven chart?
How should profit or loss be measured on a breakeven chart?
As vertical distance between SR & TC lines
Where does the sales revenue line start on a breakeven chart?
Where does the sales revenue line start on a breakeven chart?
At the origin (0,0)
What happens to the sales revenue line when the selling price increases?
What happens to the sales revenue line when the selling price increases?
The line becomes steeper
What effect does a rent increase have on a breakeven chart?
What effect does a rent increase have on a breakeven chart?
Upward shift in fixed cost line