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- Multiple ChoicePlease save your changes before editing any questions.
Which of the following is an example of a variable cost for a coffee shop?
Buildings insurance
Interest on a start-up loan
Milk
Newspaper advertising
- Multiple ChoicePlease save your changes before editing any questions.
Which letter on the diagram above shows the break-even point for the product?
A
B
C
D
- Multiple ChoicePlease save your changes before editing any questions.
What does Line X represent on the break-even graph?
Fixed costs
Sales revenue
Total costs
Variable costs
- Multiple ChoicePlease save your changes before editing any questions.
A variable cost can be best defined as:
a cost that cannot be measured
a cost that changes with demand
a cost that changes with output
a cost that increases and decreases
- Multiple ChoicePlease save your changes before editing any questions.
If total revenue is equal to total cost, a business will:
Break even
Increase prices
Make a loss
Make a profit
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following is an example of a fixed cost for a shoe retailer?
Carrier bags
Ink cartridges for the cash till
Insurance for the shop premises
Shoe boxes
- Multiple ChoicePlease save your changes before editing any questions.
The owner of Hair by Hari Ltd forecasts that it will cut the hair of 60 customers during its first month of opening.
The average price for a haircut will be £45. How much sales revenue will be made during the first month of trading?
£270
£2700
£2900
£27000
- Multiple ChoicePlease save your changes before editing any questions.
‘Salaries’ are an example of:
Fixed costs
Profit
Sales revenue
Variable costs
- Multiple ChoicePlease save your changes before editing any questions.
How much profit is made if a business earns £18 000 of sales revenue and its total costs are £7 500?
£8 000
£10 500
£25 500
£135 000
- Multiple ChoicePlease save your changes before editing any questions.
Sarah runs a business selling flowers. Last week she earned £1 350 of sales revenue.
If last week Sarah’s average selling price per bunch of flowers was £15, how many bunches of flowers did she sell?
9
45
90
135
- Multiple ChoicePlease save your changes before editing any questions.
What is shown by the shaded area?
Break-even
Fixed costs
Loss
Profit
- Multiple ChoicePlease save your changes before editing any questions.
Cerys operates a small catering business. During the month of January, she earned £2745 sales revenue.
Her total costs for the month of January were £2820. Which of the following best describes the situation which Cerys is in?
Break even
Cash flow
Loss
Profit
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following is an example of a variable cost for a gym?
Advertising in the local newspaper
Insurance for the gym premises
Rent for the gym buildings
The fitness instructor’s wage
- Multiple ChoicePlease save your changes before editing any questions.
Kristoff runs a toy shop. He sells small toy cars at a price of £5.10 each and sells an average of 32 cars per week.
What is the sales revenue generated during the month of February (assume there are four weeks during the month of February)?
£150
£163.20
£600
£652.80
- Multiple ChoicePlease save your changes before editing any questions.
Sophie runs a small shop selling pet food. During the month of April she sold 55 packets of dog food at a price of £1.55 and her total costs were £350.
How much revenue did Sophie generate in April?
–£264.75
£6.36
£85.25
£542.50
- Multiple ChoicePlease save your changes before editing any questions.
Break-even information may help with decisions about:
Customer feedback
Market research
Pricing
Product safety standards