breakeven edexcel business gce a level

Rent, loan interest, salaries of office staff are examples of :

• variable costs

• fixed costs

Formula for unit contribution =

• selling price + variable cost per unit

• selling price x variable cost per unit

• selling price - variable cost per unit

• selling price / variable cost per unit

Formula for breakeven =

• fixed costs + contribution per unit

• fixed costs - contribution per unit

• fixed costs x contribution per unit

• fixed costs / contribution per unit

Fixed costs = £24,000 per month, contribution per unit = £8

therefore breakeven = (a)   units (number only)

Sales (output) = 5000 units per month, breakeven = 3000 units per month. The margin of safety = (a)   (number only)

On this breakeven graph the blue line represents :

• total revenue

• total costs

• fixed costs

The total revenue line starts at :

• the fixed costs line

• zero

The area shaded in red shows :

• break-even point

• loss

• profit

• variable costs

The break-even point = (a)   units (number only)

The shaded area represents :

(a)   costs (one word answer)