G10 WK9 BUSINESS COSTS AND BREAK EVEN POINT AND CHART REVIEW
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Business StudiesSecondary Education
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Slide 1 - Diapositive
Slide 2 - Diapositive
Slide 3 - Diapositive
Slide 4 - Diapositive
Slide 5 - Diapositive
Slide 6 - Diapositive
Calculate the variable cost per unit in February for Areej juice if: fixed costs are 5,550 AED, variable costs are 3,300 AED and the total output is 1,500.
A
2.2 AED
B
5.8 AED
C
4,955 AED
D
8,325 AED
Slide 7 - Quiz
What is the break-even point?
A
It is the exact number where total revenue equals total costs.
B
It is the number of revenue divided by costs.
Slide 8 - Quiz
Why do we use the break-even point?
A
To set prices and know how many products to sell to make a profit.
B
To know which method of production to use.
Slide 9 - Quiz
How do we calculate the break-even point?
A
1. selling price per unit/ variable cost per unit 2. total fixed costs/ contribution per unit
B
1. total revenue/ total fixed costs 2. fixed costs/ average costs
Slide 10 - Quiz
Slide 11 - Diapositive
Which line do we draw first on a break-even chart?
A
total revenue
B
total cost
C
fixed cost
Slide 12 - Quiz
Which line is parallel to the variable costs line?