Break Even Point

In order to make a profit a business must make ? money from sales than what is paid out in expenses

• less

• more

• the same

• pass

The break even point is when

• Profit=Sales

• Sales=Fixed Costs

• Total Costs=Total Revenue

• Total Costs<Total Revenue

In a BEP Chart, quantity (units) usually appears on the

• X axis

• Y axis

In a BEP Chart, sales (£) usually appears on the

• X axis

• Y axis

Costs are also known as expenses, which is

• Money coming in to the business

• Money going out of the business

A fixed cost

• Changes depending on levels of production

• Stays the same no matter how many units are made

A variable cost

• Changes depending on levels of production

• Stays the same no matter how many units are made

Examples of Fixed Costs include

• Rent

• Raw materials

• Insurance

• Electricity

Examples of Variable Costs include

• Rates

• Loan repayments

• Raw materials

• Employees on a piece rate

Total revenue is calculated by

• Selling price / units sold

• Selling price x units sold

• Units sold / selling price

• Fixed costs + variable costs