NEW
Font size
WorksheetsBreak-even Y11
Total questions: 13
Worksheet time: 15mins
What is the formula for Revenue?
Price x Quantity sold
Fixed costs + Variable costs
Costs x Quantity
Income stream
Which of the following is an example of a fixed cost?
Salaries
Bills per product sold
Materials
Packaging
What is the formula for Total Costs?
Variable costs - Fixed costs
Variable costs + Fixed costs
Selling price + Fixed costs
Variable costs X Fixed costs
On a graph, the break even point is?
Where the fixed costs & variable costs lines cross
Where the sales revenue & total costs lines cross
Shown by the area of profit
The margin of safety
The break-even point is measured by
Revenue
Sales
Profit
Output
The break-even formula is
Fixed costs / (variable costs - total costs)
Fixed costs / (selling price - variable costs)
Contribution / by fixed costs
Fixed costs - revenue
Ellie is starting a new business making pies. She needs to work out how many pies she needs to sell to break even. Ellie plans the pies for £1.25 each. The ingredients and packaging costs 50p and her fixed costs are £1524 per month. How many units would Ellie need to sell to break even?
75 pies
2032 pies
£75
£2032
Margin of safety is?
Actual sales - break even sales
Fixed costs - selling price
Actual sales + break even sales
Actual sales - Fixed costs
If there is an increase in sales, what will happen to the margin of safety?
Increase
Decrease
Remain the same
If there is a price increase what will happen to the break-even point?
It falls
It rises
It stays the same
If there is an increase in costs what will happen to the break-even point and profits?
Break-even point rises, profits rise
Break-even point rises, profits fall
Break-even point falls, profits rise
Break-even point falls, profits fall
Which area reflects the area of profit in the break-even graph?
A
B
C
D
Which of the following is not reason as to why break-even should be calculated?
The business knows its fixed & variable costs
Can calculate the margin of safety
Assumes costs remain the same
Can forecast likely profit at different ouput
