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Mastering Break Even Analysis

Break Even Analysis
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Slide 1: Tekstslide
TourismFoundation Degree

In deze les zitten 14 slides, met interactieve quiz, tekstslides en 1 video.

time-iconLesduur is: 90 min

Onderdelen in deze les

Break Even Analysis

Slide 1 - Tekstslide

Learning Objective
Understand the concept of break-even analysis and its application in business decision-making

Carry out break even point calculations

Draw a break even chart on graph paper 

Slide 2 - Tekstslide

Has anyone studied break even before?
Yes
No

Slide 3 - Poll

Components of Break-Even Analysis
Fixed costs

Variable costs

Selling price 

Slide 4 - Tekstslide

Definition of Break-Even Analysis
Break-even analysis is a calculation used to determine the point at which revenue received equals the costs associated with receiving the revenue.

Slide 5 - Tekstslide

Importance in Decision Making
Break-even analysis helps businesses in setting prices, determining the impact of cost changes, and making investment decisions.

Slide 6 - Tekstslide

Break-Even Point Calculation

Fixed costs
_____________

Selling price per unit - Variable cost per unit 

Slide 7 - Tekstslide

Slide 8 - Video

Graphical Representation
Break-even analysis can be visually represented through a graph, showing the intersection of the revenue and cost lines.

Slide 9 - Tekstslide

Slide 10 - Tekstslide

www.bbc.co.uk

Slide 11 - Link

Example.....
A business that sells T-shirts knows that:

Its fixed costs are £400.
The selling price (per unit) is £10.
The variable costs (per unit) are £6.

So their BEP can be calculated as:











Slide 12 - Tekstslide

Slide 13 - Tekstslide

Practice Task and Assignment Task 4  

Slide 14 - Tekstslide