Break-even (OCR GCSE Business): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
ShowHide
Practise the questions
12 questions from this quiz
What is the break-even point?
What is the break-even point?
When total revenue = total costs
What is the margin of safety?
What is the margin of safety?
How much sales can fall before break-even
What does contribution mean?
What does contribution mean?
How much each unit covers fixed costs
How is contribution per unit calculated?
How is contribution per unit calculated?
Selling price - variable cost per unit
How do you calculate break-even output?
How do you calculate break-even output?
Fixed costs ÷ Contribution per unit
How is the margin of safety calculated?
How is the margin of safety calculated?
Actual output - Break-even output
How does break-even analysis benefit worker motivation?
How does break-even analysis benefit worker motivation?
Gives workers a target to aspire to
How does break-even help with business planning?
How does break-even help with business planning?
Can examine scenarios like cost rises
What unrealistic assumption does break-even make about variable costs?
What unrealistic assumption does break-even make about variable costs?
They always stay the same
What does break-even assume about units produced?
What does break-even assume about units produced?
All units produced are sold
Why is break-even not suitable for some businesses?
Why is break-even not suitable for some businesses?
Not good for multiple products
A business sells cases at £20, variable cost £8, fixed cost £30,000. What's break-even output?
A business sells cases at £20, variable cost £8, fixed cost £30,000. What's break-even output?
2,500 units