Changes in Price, Output and Cost (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What happens to the sales revenue line when a business increases its selling price?
What happens to the sales revenue line when a business increases its selling price?
It pivots upward, becoming steeper
How does a price increase affect the breakeven output level?
How does a price increase affect the breakeven output level?
Breakeven output decreases (fewer sales)
What is the effect of a price decrease on breakeven output?
What is the effect of a price decrease on breakeven output?
Higher output needed to break even
How does an increase in fixed costs affect the total cost line on a breakeven chart?
How does an increase in fixed costs affect the total cost line on a breakeven chart?
Causes a parallel upward shift
What happens to breakeven output when fixed costs rise?
What happens to breakeven output when fixed costs rise?
Breakeven output increases
Which costs determine the gradient (steepness) of the total cost line?
Which costs determine the gradient (steepness) of the total cost line?
Variable costs
How does an increase in variable costs affect the total cost line?
How does an increase in variable costs affect the total cost line?
Line pivots upward, becoming steeper
Which of these is a fixed cost?
Which of these is a fixed cost?
Business rent
Why do banks require breakeven analysis when considering loan applications?
Why do banks require breakeven analysis when considering loan applications?
To see if sales can cover costs & repay
How is profit or loss measured on a breakeven chart?
How is profit or loss measured on a breakeven chart?
Vertical gap between revenue & cost lines