stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Break Even GCSE Flashcards | StudBud
Explore
/
Break Even GCSE
Break Even GCSE
10 terms
·
StudBud Administration
·
809 plays
Theme 1 Topic 1.3
Flashcards
10 cards
F
Practice quiz
P
Host live
L
Questions
10
Answers
1
One
benefit
to using a breakeven analysis is
Margin of safety is known
Costs are unknown
Margin of safety is unknown
The owner can make adjustments to try to make profit sooner
2
If a company
DECREASES
their fixed
COST
S
They will have to look for new products to sell
They will make more profit
They will have to sell more units to break even
Their breakeven point will be lower
3
On a breakeven chart
profit
is shown .......
To the right of the breakeven point
on the x axis
On the y axis
To the left of the breakeven point
4
Total costs are .....
Fixed costs plus variable costs
variable costs
Fixed costs
start up costs
5
Your business has a breakeven of 650 units and sells 1000 units what is your margin of safety
1000
650
1000-650=350 baked beans
1000-650=350 units
6
A
risk
of not using breakeven analysis is
Margin of safety is unknown
Margin of safety is known
Costs are unknown
The owner can make adjustments to try to make profit sooner
7
Break even is expressd in terms of what?
Number of units
baked beans
amount in €
amount in £
8
Breakeven point is the point where
sales revenue and total costs are equal
A start up business begins to trade
The company neither makes a profit or a loss
a business goes into liquidation
9
An
INCREASE
in VARIABLE
COSTS
will mean
profit levels will fall
profit levels will rise
An increase in staff
A company must sell more units to break even
10
Fixed costs =
£1000
, Sell price =
£15.0
0 p/u, Variable costs =
£3.50
p/u Calculate breakeven
£0
87
87 units
£87
