Free Printable Break Even

Worksheets

Break Even

Total questions: 17

Worksheet time: 10mins

Name

Class

Date

What does break even point show?

where a business is neither making a profit or loss

how many items to make

how much profit they're making

where a business has more fixed costs than variable

What is the formula for contribution?

cost price - selling price

fixed costs - variable costs

selling price - variable cost

selling price - cost price

What is one limitation to calculating break even?

helps projected sales

based on estimates

based on multiple products

considers stock wastage

To draw the BE graph you must plot Total Costs and ........

Total Production

Total Revenue

Total Fixed Costs

Total Units

What is the break-even point in units for a company whose total fixed costs are £275,450; selling price per unit is £16; and variable cost per unit is £14.75?

220,360

150,300

183,633

225,120

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?

£300

£500

£200

Cannot be calculated

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

When a business has made enough money to pay its costs and begin to make a profit, it has reached its

break-even point

variable-cost margin

fixed cost

selling price

Some business costs are classified as fixed costs because they

must be paid within a set time

don't change when sales go up or down

are unpredictable and must be estimated

cost all businesses the same amount

10.

If a business's sales double, its variable costs will also likely

remain the same

decrease

increase

double

11.

It may be difficult for a new business to predict its variable costs because new businesses

are sometimes short of working capital

don't have access to industry figures

may have inexperienced employees

don't have past sales records

12.

A business that does not reach break-even will

go bankrupt

have profit and loss

lose money

need to relocate

13.

One of the main purposes for calculating break-even is to help the business to

determine stock value

prepare an income statement

forecast sales

set selling prices

14.