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WorksheetsBTEC L2 U2 - Breakeven
Total questions: 20
Worksheet time: 19mins
On a break even chart, which line starts at zero?
Total Revenue
Fixed Costs
Total Costs
Variable Costs
On a break even chart, which line is horizontol?
Total Revenue
Fixed Costs
Total Costs
Variable Costs
On a break even chart, which line starts at fixed costs?
Total Revenue
Fixed Costs
Total Costs
Variable Costs
On a break even chart, where is breakeven?
Total Revenue = Total Costs
Fixed Costs = Total Revenue
Total Costs = Fixed Costs
Variable Costs = Total Revenue
Break Even is measured in
Output
£
What appears on the x axis on a Break Even Chart?
Revenue
Total Costs
Output/Number of units
Sales Revenue
If you produce a number of units that is below the break-even point you will...
Make a loss
Make a profit
Make no money at all
What is the margin of safety?
The difference between your chosen output and the break even point
The difference between sales and output
The difference between profit and loss
The difference between Total Revenue and Total Profit
On this chart at which point does this business break even?
190
200
$2,000
$1,000
Using this diagram what line is G?
Total Revenue
Variable Costs
Total Costs
Fixed Costs
Using this diagram what line is F?
Total Revenue
Variable Costs
Total Costs
Fixed Costs
Using this diagram what line is H?
Total Revenue
Variable Costs
Total Costs
Fixed Costs
If you have an increase in sales what effect would that have on the break-even point?
Increase
Decrease
Stay the same
If you have an increase in costs what effect would that have on the break-even point?
Increase
Decrease
Stay the same
Which is a true effect if there is a decrease in costs?
The margin of safety would increase
The number of sales required to break-even increases
Break-even point is lower so the business makes more profit
Which of the following are benefits of using break-even analysis?
The margin of safety is known
The owner can make adjustments as it is a plan
Prices could change
The owner knows how many goods to sell to make a profit
If fixed costs are 100, selling price is 10 and the variable costs are 5. What is break-even?
25
20
10
35
If fixed costs are 500, selling price is 15 and the variable costs are 5. What is break-even?
50
20
60
35
Select the risk of not completing a break-even analysis
Costs are unkown
the selling price may be too high
The business makes a loss
Too much stock held because not calculated how many to sell
If you increase Total Costs by 10% and increase Sales Revenue by 10% what would happen to the original break even point?
It would stay the same
It would increase
It would decrease
