Break Even
14 minutes ago
alan_issott_50733
Save
Edit
Host a game
Live GameLive
Homework
Solo Practice
Practice
• Question 1
30 seconds
Report an issue
Q. 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
• Question 2
30 seconds
Report an issue
Q.

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

• Question 3
30 seconds
Report an issue
Q. What is the margin of safety?
the margin between projected units and break even point units
the margin between profit and loss
the margin between units and sales
the margin between each break even point
• Question 4
30 seconds
Report an issue
Q.

What is the formula for contribution?

cost price - selling price

fixed costs - variable costs

selling price - variable cost

selling price - cost price

• Question 5
30 seconds
Report an issue
Q. What is one limitation to calculating break even?
helps projected sales
based on estimates
based on multiple products
considers stock wastage
• Question 6
30 seconds
Report an issue
Q. To draw the BE graph you must plot Total Costs and ........
Total Production
Total Revenue
Total Fixed Costs
Total Units
• Question 7
30 seconds
Report an issue
Q. 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
• Question 8
30 seconds
Report an issue
Q.

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

• Question 9
30 seconds
Report an issue
Q.

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

• Question 10
30 seconds
Report an issue
Q. 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
• Question 11
30 seconds
Report an issue
Q. If a business's sales double, its variable costs will also likely
remain the same
decrease
increase
double
• Question 12
30 seconds
Report an issue
Q. Most businesses receive the bulk of their income from
dividends
sales revenue
return on investment
capital
• Question 13
30 seconds
Report an issue
Q. 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
• Question 14
30 seconds
Report an issue
Q. Businesses calculate break-even in units so they know
how much profit they will earn after they break even
which products they should purchase for resale
which costs are variable and which are fixed
how many products they must sell to break even
• Question 15
20 seconds
Report an issue
Q.

Which one of the following would be included in the calculation of total costs?

Selling price

Rent of premises

Revenue

Refund to a customer

• Question 16
120 seconds
Report an issue
Q.

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

• Question 17
60 seconds
Report an issue
Q.

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

• Question 18
30 seconds
Report an issue
Q.

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

• Question 19
30 seconds
Report an issue
Q.

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

• Question 20
30 seconds
Report an issue
Q.

Frederick is revising his formulae for a test on break-even. He has mixed up his revision notes. What is the formulas for Profit