Break-even charts (Edexcel GCSE Business): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What happens at the break-even point?
What happens at the break-even point?
Income from sales exactly matches all costs
Why is break-even analysis vital for business planning?
Why is break-even analysis vital for business planning?
Helps set prices, sales targets & costs
How does the total revenue line appear on a break-even chart?
How does the total revenue line appear on a break-even chart?
Upward-sloping line starting from zero
What does the fixed costs line look like on a break-even chart?
What does the fixed costs line look like on a break-even chart?
A horizontal line
Where is the break-even point located on a break-even chart?
Where is the break-even point located on a break-even chart?
Where total revenue crosses total costs
What does the margin of safety measure?
What does the margin of safety measure?
Gap between current output & break-even
What does the area above the break-even point represent?
What does the area above the break-even point represent?
Profits
How do you calculate total costs?
How do you calculate total costs?
Fixed costs + Variable costs
What is the formula for break-even point in units?
What is the formula for break-even point in units?
Fixed costs ÷ (Price - Variable cost)
What is contribution per unit?
What is contribution per unit?
Selling price - Variable cost per unit
In the PlayStation example, how many consoles break even?
In the PlayStation example, how many consoles break even?
15,000 consoles
Which is NOT a key application of break-even analysis?
Which is NOT a key application of break-even analysis?
Eliminating all business risks