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WorksheetsBreak-Even - BTEC L3 Unit 7 Revision.
Total questions: 15
Worksheet time: 12mins
Name
Class
Date
1.
When a business has made enough money to pay its costs and begin to make a profit, it has reached its
a)
break-even point
b)
variable-cost margin
c)
fixed cost
d)
selling price
2.
Some business costs are classified as fixed costs because they
a)
must be paid within a set time
b)
don't change when sales go up or down
c)
are unpredictable and must be estimated
d)
cost all businesses the same amount
3.
If a business's sales double, its variable costs will also likely
a)
remain the same
b)
decrease
c)
increase
d)
double
4.
It may be difficult for a new business to predict its variable costs because new businesses
a)
are sometimes short of working capital
b)
don't have access to industry figures
c)
may have inexperienced employees
d)
don't have past sales records
5.
Most businesses receive the bulk of their income from
a)
dividends
b)
sales revenue
c)
return on investment
d)
capital
6.
What assumption does this statement say "Break even is 54 units"?
a)
if we sell 55 we aren't making a profit
b)
if we sell 54 we begin to make a profit
c)
if we sell 55 we begin to make a profit
d)
if we sell 54 we are not yet at break even point
7.
What is the margin of safety?
a)
the margin between projected units and break even point units
b)
the margin between profit and loss
c)
the margin between units and sales
d)
the margin between each break even point
8.
What is one limitation to calculating break even?
a)
helps projected sales
b)
based on estimates
c)
based on multiple products
d)
considers stock wastage
9.
To draw the BE graph you must plot Total Costs and ........
a)
Total Production
b)
Total Revenue
c)
Total Fixed Costs
d)
Total Units
10.
My total costs are £50,000 when selling 100 items. My fixed costs are £20,000. What must be the variable cost of one item?
a)
£300
b)
£500
c)
£200
d)
Cannot be calculated
11.
Which one is not included in the Break Even formula?
a)
variable costs per unit
b)
total fixed costs
c)
selling price per unit
d)
cost price per unit
12.
How is break even point measures?
a)
dollars
b)
loss
c)
profit
d)
items
13.
Which one is an example of a fixed cost?
a)
resources
b)
materials
c)
temporary wages
d)
rates
14.
Define variable costs.
a)
costs only related to making the product
b)
overhead costs
c)
combined costs
d)
costs that include marketing
15.
Define mark up
a)
profit
b)
the cost price
c)
the selling price
d)
the added cost to cost price
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