G10 WK9 BUSINESS COSTS AND BREAK EVEN POINT AND CHART REVIEW

• Business Studies
• Secondary Education

Thursday, 1st February 2024

1. To work on the Market Day project tasks.

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.

1. 2.2 AED
2. 5.8 AED
3. 4,955 AED
4. 8,325 AED

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

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

If the selling price per unit = Dh16
The variable cost per bottle = Dh4
Total fixed costs = Dh4,000
How much will the contribution per bottle be?

1. 12
2. 32
3. 40
4. 64

If the selling price per unit = Dh16
The variable cost per bottle = Dh4
Total fixed costs = Dh4,000
Contribution Per Unit= Dh12
How much will the break-even point be?

1. 203
2. 230
3. 303
4. 333

200

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