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WorksheetsFinance For Busines - Part 2 - Break Even
Total questions: 13
Worksheet time: 10mins
Which one of the following would be included in the calculation of total costs?
Selling price
Rent of premises
Revenue
Refund to a customer
Which one of the following statements is true about break-even point?
Total costs are less than total revenue
Variable costs are equal to total revenue
Total costs are equal to total revenue
Total costs are greater than total revenue
Which two of the following statements are true about a break-even chart?
The fixed cost line is a horizontal straight line
The total cost line starts at zero and slopes upwards
The variable cost line starts at fixed costs and slopes upwards
The revenue line starts at zero and slopes upwards
Gemima sells dolls houses at £50 each. Each dolls house costs her £32 to make. Her fixed costs are £2700. How many dolls houses must Gemima make in order to break-even?
Break-even = fixed cost
Selling price per unit - variable cost per unit
150
22
19
20
Gemima's dolls houses are very popular, she is considering setting her selling price to £55. If she does this what would happen to her break-even point?
Would increase
Would decrease
Would stay the same
Bart is planning on opening an ice cream parlour. After carrying out some research a friend has presented him with a break-even chart but he is unsure of what it means.
He has asked you to show him where the break-even point is.
1
2
3
4
Bart is planning on opening an ice cream parlour. After carrying out some research a friend has presented him with a break-even chart but he is unsure of what it means.
He has asked you to show him where he will make a profit.
1
2
3
4
Bart should break-even at 600 ice creams per month. He believes that he can sell 850 ice creams per month. What is his margin of safety?
250
1450
150
50
Bart has found a cheaper supplier of ice cream. His friend tells him that this is a good idea because it means both his break-even point and margin of safety will go down. Bart is confused as to whether this is true or false. He has asked you to help.
True
False
Frederick is revising his formulae for a test on break-even. He has mixed up his revision notes. What is the formulas for Margin of safety
Total revenue - total cost
Fixed cost + variable cost
Actual output - break-even point
Total revenue = total cost
Frederick is revising his formulae for a test on break-even. He has mixed up his revision notes. What is the formulas for Break-even
Total revenue - total cost
Fixed cost + variable cost
Actual output - break-even point
Total revenue = total cost
Frederick is revising his formulae for a test on break-even. He has mixed up his revision notes. What is the formulas for Total Costs
Total revenue - total cost
Fixed cost + variable cost
Actual output - break-even point
Total revenue = total cost
Frederick is revising his formulae for a test on break-even. He has mixed up his revision notes. What is the formulas for Profit
Total revenue - total cost
Fixed cost + variable cost
Actual output - break-even point
Total revenue = total cost
