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OCR GCSE Business 9-1 : Break Even Analysis Flashcards | StudBud
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OCR GCSE Business 9-1 : Break Even Analysis
OCR GCSE Business 9-1 : Break Even Analysis
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Questions
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Answers
1
Selling price is £10 , Variable Cost is £5 , Fixed Cost is £500. What is the break -even point?
£50
£100
£10
100 units
2
What happens to break even point when variable costs fall?
It's higher
It's lower
It stays the same
It goes to zero
3
Which type of cost will
not
change even if output increases?
Production cost
Total cost
Variable cost
Fixed cost
4
What is a business doing at the break even point?
Making a loss.
Making neither a profit nor a loss.
Making a profit.
5
fixed costs = £200, selling price = £4, variable cost = £2, what is the break even point?
100
50
200
150
6
What is break even analysis?
The calculations of break even
A management tool to understand break even point
A break even graph
A break even formula
7
What is the break even point?
When total costs and total revenue are equal
When the losses of the business
Variable costs plus fixed costs
The profits of the business
8
What is the effect on BE point of increasing the cost of rent?
BE point is higher
BE point is lower
TC are lower
TC are higher
9
On a break even chart, what is the total cost above the breakeven point?
Less than total revenue
Greater than total revenue
Equal to total revenue
10
Break even will decrease when selling price decrease and costs stay the same
True
False
11
What is contribution?
The price of an item less total cost
The price of an item less the fixed cost per item
The price of an item less the revenue
The price of an item less the variable cost per item
12
How do you work out the break even point?
fixed cost+ unknown costs
money+money
fixed costs/ price- variable costs
sales*price
13
What is not used in the break even formula?
number of employees
variable costs
fixed costs
selling price
14
Increasing selling price will do what to the break even point?
Make costs lower.
Lower it
Increase levels of demand.
Raise it.
15
What happens to break even point when selling price increases?
It stays the same
It's Lower
It's higher
It goes to zero
