WorksheetsBreak-even
Total questions: 33
Worksheet time: 39mins
What assumption does this statement say "Break even is 54 units"?
if we sell 55 we aren't making a profit
if we sell 54 we begin to make a profit
if we sell 55 we begin to make a profit
if we sell 54 we are not yet at break even point
What is the formula for contribution?
cost price - selling price
fixed costs - variable costs
selling price - variable cost
selling price - cost price
Fixed costs: = £30,000
Variable cost: = £200 per photo shoot
Forecast output (Sales): = 140 photo shoots
Selling price: = £1000 per photo shoot
What is the Total Contribution?
£112 000
£112 500
£375
£800
Simon has worked out the following figures for new Bobble Hats he is going to sell. He estimates that he can produce 20 000 hats a month with a selling price of £3.50. He expects the machinery costs to be £60 000 per annum, staff salaries are £72 000 per annum and raw materials cost £30 000 per month.
What is the margin of safety?
66 000
74 000
200 000
174 000
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
The formula for the break even point is
Fixed Costs - Contribution
Selling Price / Fixed Costs
Contribution / Fixed Costs
Fixed Costs / Contribution
Product X's selling price is £20 and the variable cost of producing 1 unit is £8. Contribution is...
£28
-£28
£12
£160
Product Z has a contribution of £30 and the business has fixed costs of £600,000. The break even point would be...
Twenty thousand units
Eighteen million units
Six hundred and thirty thousand units
Fifty thousand units
Given that Salaries are £40,000, Rent is £10,000 and Materials cost £16,000: Fixed Costs would total...
£66,000
£50,000
£14,000
£56,000
It costs £13 to produce 1 unit of Product Q. Given that the business also has fixed costs of £78,000, calculate the break even point.
£6,000
£0.00017
0.00017 units
6,000 units
Any sales after the break even point has been reached would be classed as...
Profit
Loss
Continuing to break even
Fixed Costs
What are examples of variable costs?
Raw materials & interest rates
Performance bonuses & monthly advertisement costs
Raw materials & performance bonuses
Interest rates & monthly advertisement costs
The break-even point is
where total revenue equals total costs
when total costs equal 0
when total revenue equals 0
where number of output equals total costs
Where is the break-even point?
Output 75, Sales 900, Total costs -1300
Output 125, Sales 1500, total costs -1500
Output 150, Sales 1800, Total costs -1600
Output 200, Sales 2400, Total costs -1800
When a business is making a profit,
the sales revenue is higher than the total costs
the total costs are higher than the sales revenue
the number of output is higher than the total costs
the total costs are higher than the number of output
When a business is making a loss,
the sales revenue is lower than the total costs
the sales revenue is lower than the variable costs
the sales revenue is lower than the fixed costs
the sales revenue is equal to the total costs
When the sales are €1200 and TC=€1500, the business is
at their break-even point
making a profit
making a loss
You don't have enough information to answer the question
Semi-variable costs are
composed of a mixture of fixed and variable costs, e.g. salaries that include a performance bonus
equal parts fixed and variable costs, e.g. salaries that include a performance bonus
composed of a mixture of fixed and variable costs, e.g. salaries that include a fixed bonus
equal parts fixed and variable costs, e.g. salaries that include a fixed bonus
