G10 T2 Break Even Analysis

• Business Studies
• Secondary Education

Monday, 10th of February 2025

The total cost is all the money going out of a business.

1. true
2. false

The total revenue is all the money coming into the business.

1. true
2. false

If the total cost is less than total revenue, the business makes a ________.

1. profit
2. loss

If the total cost is more than total revenue, the business makes a _______.

1. profit
2. loss

A business wants to have less total costs than total revenue.

1. true
2. false

This helps us to know how many products we need to sell, to have some profit!

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

If fixed costs are: 32,250 Variable costs are: 20,350 and total output is 5,500. Calculate the variable cost per unit.

1. 3.00 AED
2. 3.70 AED
3. 9.00 AED
4. 9.56 AED

forms.office.com

Calculate the break-even point for Patchi chocolates using the information: Fixed costs are 10,000, Variable costs are 4,300. Output is 3,000. The selling price is 150 AED.
First calculate the Contribution per unit (selling price - variable cost per unit), then Fixed costs / contribution per unit.

200