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WorksheetsBreak-even Analysis Fun Quiz
Total questions: 25
Worksheet time: 13mins
Adam and Vanessa are planning a school event. What is a fixed cost in their break-even analysis?
A cost that varies with the level of output.
A cost that remains constant regardless of the level of output.
A cost that changes with the level of sales.
A cost that is partially fixed and partially variable.
Vanessa is organising a school event. Which is a variable cost for the event?
Rent for the building.
Salaries of teachers.
Raw materials for projects and supplies.
Insurance premiums for buses.
How do Grace and Adam calculate the break-even point in units for their lemonade stand?
Selling Price per Unit−Variable Cost per UnitFixed Costs
Total CostsTotal Revenue
Total CostsTotal Sales
Total RevenueFixed Costs
Rebecca and Mo are running a small business. What does the margin of safety represent in their break-even analysis?
The difference between total revenue and total costs.
The amount by which sales can drop before reaching the break-even point.
The total contribution margin.
The total fixed costs.
Maria is planning a school event. Which describes the costs of organising the event?
Costs that do not change with the number of attendees.
Costs that vary directly with the number of attendees.
Costs that have both fixed and variable components.
Costs that are incurred only when the event starts.
Rebecca and Harry are organising a school fair and are selling merchandise. What is the formula for calculating the total contribution of merchandise sales?
Total Revenue - Total Costs
Total Sales - Fixed Costs
Total Sales - Variable Costs
Total Revenue - Fixed Costs
Rebecca and Maria are running a lemonade stand. What does the intersection of the total cost and total revenue lines represent?
The area of profit.
The area of loss.
The break-even point.
The margin of safety.
Darcie sells 250 potions for £5000. What is the price per potion?
£10
£15
£20
£25
Shalom and Alyssa are using a project management tool for their group assignment. What is a limitation of using this tool?
It helps in setting project goals.
It assumes all tasks are completed successfully.
It assists in monitoring project performance.
It provides a clear area of project success and failure.
How should Mustafa calculate the margin of safety in units?
Total Sales - Break-even Sales
Total Revenue - Total Costs
Total Contribution - Fixed Costs
Total Sales - Total Revenue
What is the primary purpose of break-even analysis for Alyssa's new cartoon show?
To determine the maximum profit.
To identify the level of sales needed to cover costs.
To calculate the total variable costs.
To set the selling price per unit.
If Rebecca's fixed costs are £2000, the variable cost per lemonade is £5, and the selling price is £10, what is the break-even point in lemonades?
200 lemonades
300 lemonades
400 lemonades
500 lemonades
Dean and Abi are analysing a break-even chart for their new business. What does the area above the break-even point on the chart represent?
Area of loss
Area of profit
Total fixed costs
Total variable costs
Maria is calculating her merchandise sales for her online store. Which of the following is NOT part of her merchandise sales calculation?
Selling price per unit
Number of units sold
Total revenue
Fixed costs
Abi sells a toy for £25 and it costs her £15 to make it. What is the contribution per toy?
£5
£10
£15
£20
Cycle4U is a bicycle shop in the town. The fixed cost of the company is £14,000 per month. The contribution per unit is £200. Using this information, if the target profit is £20,000, calculate how many bicycles the shop needs to sell.
70
100
170
200
Jan runs an ice cream shop. Jan needs to sell 10,000 units to break even. Jan sold 10,250 units this month. Calculate Jan’s margin of safety.
100
250
500
1,000
Leila runs an ice cream shop. Each unit of ice cream has a variable cost of £1.50 and sells for £2.00. Leila’s fixed cost for operating the shop is £5000 per month. How many ice creams does Leila need to sell to break even?
2,000
5,000
8,000
10,000
Ali runs an ice cream shop. Each unit of ice cream has a variable cost of £0.50 and sells for £2.00. Ali’s fixed cost for operating the shop is £5000 per month. What is the contribution per unit of ice cream?
£0.50
£1.50
£2.00
£2.50
The point where a business makes neither profit nor loss occurs when:
TR = TC
TR > TC
TC > TR
TR = TC or TR > TC
Which of the following terms indicates that total revenue is greater than total costs?
Profit
Loss
Break-even
Margin of safety
A firm has fixed costs of £10,000, total variable costs of £30,000, and sells each product for £2. Therefore, it needs to sell 20,000 products to break-even.
True
False
Which of the following is a limitation of using break-even analysis?
It can be used to evaluate company capacity.
It assumes that all customers pay the same price.
It allows companies to set sales targets.
It can be used to see how changes in costs may affect profit.
Key Term: the numerical difference between a firm’s volume of sales and its break-even quantity.
Break Even Quantity
Total Contribution
Margin of Safety
Target Profit
On a break-even chart, the total costs line slopes diagonally from left to right, beginning at the origin (zero).
True
False
