Break Even Point Revision

What is a business doing at the break-even point?

• Making a profit

• Making a loss

• Making neither a profit or a loss

What is the formula for Margin of safety?

• Actual sales - Sales at Break Even Point

• Actual Sales + Sales at Breakeven Point

• Actual Sales x Sales at Breakeven point

• Actual Sales / Sales at Breakeven Point

On a break even chart, what line does the total revenue line meet at the break even point?

• Fixed Cost Line

• Variable Cost Line

• Total Cost Line

When does the break-even point change?

• When costs go up

• When costs go down

• When cost change

When does the break-even point fall?

• When costs go up

• When costs go down

• When costs change

If the average variable costs £10, average selling price is £25 and fixed costs are £60,000, then what is the break-even output?

• 4,000

• 5,000

• 6,000