G10 T2 Break Event Point Lesson 2

• Business Studies
• Secondary Education

Friday, 7th February 2025

Break-even, Profit & Loss 

1. To calculate costs and break-even point.

2. To identify if costs are appropriate. 

What is the break-even point?

1. The total revenue equals (same as) total costs. Profit and loss are the same.
2. It is the number revenue divided by costs. Profit and loss are not the same.

Why do we use the break-even point?

1. To know how many products to sell to make a profit.
2. To know which method of production to use.
3. To know how much the total costs are.

How do we calculate the break-even point?

1. Step 1: selling price per unit - variable cost per unit Step 2: total fixed costs/ contribution per unit
2. Step 1: total revenue/ total fixed costs Step 2.:fixed costs/ average costs

make a slide that has an activity to practice calculating the contribution per unit

10,000 AED

4,500 AED

3,000 AED

Calculate the variable cost per unit in February for Areej juice if:
fixed costs are 10,000 AED, variable costs are 4,500 AED and the total output is 3,000.

1. 0.85 AED
2. 1.5 AED
3. 150 AED
4. 800 AED

If the selling price per unit = Dh13
The variable cost per unit = Dh1.5
Total fixed costs = Dh10,000
How much will the contribution per Areej carton be?

1. 8.5
2. 9.5
3. 11.5

If the selling price per unit = Dh13
The variable cost per carton = Dh2.2
Total fixed costs = Dh10,000
Contribution Per Unit= Dh11.5
How much will the break-even point be?

1. 231 units
2. 869 units
3. 1130 units

The Candle Company UAE sells candles. The output produced is 5000. The total fixed cost is 10,000 Dhs and variable cost per candle is 50 Dhs. The price of each candle is 100 Dhs. What is the contribution per unit?

1. 15 Dhs
2. 50 Dhs
3. 115 Dhs

The Candle Company UAE sells candles. The output produced is 5000. The total fixed cost is 10,000 Dhs and variable cost per candle is 50 Dhs. The price of each candle is 100 Dhs. What is the break-even point?

1. 90 candles
2. 100 candles
3. 200 candles

forms.office.com

Why do we use the break-even chart?

1. to show where all the costs are
2. to show where the break-even point is
3. to show the number of output