GCSE Business Unit 1.3 (Vol 1)

Which is the correct formula for break-even point for a pizza takeaway with 600 customers a week spending an average of £20 each. Variable costs per order are £5 and the weekly fixed costs are £3,000.

• Break-even = £20 x 600

• Break-even = £3,000 / £15

• Break-even = £3,000 x £20 + 600

Label the Break- Even Diagram using the descriptors below.

a

b

c

d

e

Total Revenue

Output/Units

Fixed Costs

Break-even Point

Loss

Revenue is:

• The income a business receives from selling its goods and services

• Income that comes in the form of a loan or a grant

• The same income every month

• The difference between costs and orders

Match the picture with the correct term for Greggs Bakery

• Variable Cost

• 
• Additional Income

• 
• Revenue

• 
• Fixed Cost

• 

Adidas launch a new basketball shoe. Match the SMART objectives.

• SPECIFIC

• Check sales on a daily, weekly and monthly basis

• TIME

• To increase their market share of Basketball footwear to 40% from 30%

• MEASURABLE

• The directors are expecting to see the objective as part of a 3 year plan to increase sales in Adidas Basketball overall

• ACHIEVABLE

• Already have a strong brand image, sponsoring top players and clubs will help promote the new shoe

• REALISTIC

• Research suggests the shoe is worn as a fashion item as well as for serious ballers and sales increased by 23% in last year

How do you work out the 'contribution per unit'

• deduct the total variable cost per unit from the selling price per unit.

• deduct fixed costs from variable costs

• deduct total profits from total revenue

• divide the total variable costs by total revenue x fixed costs

Which of these is NOT usually used to show a Break even point?

• Diagram

• Table

• Formula

• Piechart

A business can ​ (a)   it's chances of becoming more​ (b)   if it ​ (c)   its sales, ​ (d)   its costs or ​ (e)   for its products.

• enhance
• profitable
• increases
• decreases
• charges a higher price

By increasing its ​ (a)   of scale can ​ (b)   its costs. Economies of scale are ​ (c)   that can occur when a company increases their scale of production and becomes more efficient, resulting in a decreased cost-per-unit. Examples include ​ (d)   and also have longer to pay suppliers which helps with ​ (e)  

• economies
• reduce
• cost advantages
• buying in bulk
• cash inflow

CASH INFLOWS V CASH OUTFLOWS

Groups:

(a) CASH INFLOWS

,

(b) CASH OUTFLOWS

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