Break even analysis

Organize these options into the right categories

Groups:

(a) Fixed costs

,

(b) Variable Costs

• hourly wages to make the product

• utility bills

• cost of packaging each product

• Materials for the product

• managers salary

• rent

• marketing costs

A business has fixed costs of 3000gbp. The Sell their product for 15gbp. The cost to make a single product is 12gbp. How many units must they sell to break even?

Mathematical Equivalence

ON

What is the fixed costs for the hotel?

• 0

• 15

• 30

• 50

What is the break even (in rooms)?

• 0

• 300

• 400

• 500

What is the total revenue at breakeven?

• 30

• 40

• 50

• 60

What is the total cost at breakeven?

• 30

• 40

• 50

• 60

If the hotel sells 500 rooms, what is the profit?

Mathematical Equivalence

ON

If the hotel sells 500 rooms, what is margin of safety?

Mathematical Equivalence

ON

If profit rises, the Break Even point will

• no effect

• fall (move left)

• rise (move right)

If profit falls, the Break Even point will

• no effect

• fall (move left)

• rise (move right)