WorksheetsCHAPTER 2_BREAKEVEN ANALYSIS
Total questions: 12
Worksheet time: 6mins
At any level of output below the breakeven point, a business will:
Make a profit
Make a loss
Increase selling price
Incur fixed costs
Which of these formulae defines the point at which breakeven occurs?
None of these
Total Revenue = Total Costs
Total Profit = Total Costs
Total Revenue = Total Price
Breakeven output can be calculated by dividing total fixed costs by:
Variable cost per unit sold
Selling price per unit sold
Contribution per unit sold
Total variable costs
A baker's fixed costs are $10,000, sells cakes at SP of $45 and the VC per cake is $25. What is the breakeven level of production?
500 units
20 units
50 units
5,000 units
What are Fixed Costs?
the amount of money allocated for a business to use in certain departments
business costs, such as rent, that do not vary because of the amount of goods produced
costs that change depending upon the output
the point in a business when the profits are equal to costs
What is an example of a fixed cost?
Rent
Packaging
Raw Materials
Wages
Which of these formulae defines the point at which breakeven occurs?
None of these
Total Revenue = Total Costs
Total Profit = Total Costs
Total Revenue = Total Price
Based on the graph, what is the BEP (value)?
RM 400 000
RM 450 000
RM 500 000
RM 550 000
These costs do not vary with the level of output
Fixed costs
Variable costs
Semi-variable costs
Materials for production are an example of
Fixed costs
variable costs
Semi-variable costs
The total amount of money coming into the business from sales of products
Selling price per unit
Sales in volume
Total Revenue
What is the breakeven point?
The amount of sales a business predicts
When Revenue = Costs
The sales a business makes halfway through the year
