Break-even Analysis

Break-even is the point where a business is:

• High levels of profit

• Loss levels of profit

• Making neither a profit nor loss

• In high levels of debt

Costs that a business may incur include:

• Buying raw materials

• Paying wages

• Advertising

• Paying for electricity

Variable costs are those that:

• Do not change regardless of production

• Change as production changes

Total costs are worked out by:

• Fixed Costs - Variable Costs

• Fixed Costs + Variable Costs

• Fixed Costs * Variable Costs

• Fixed Costs - Variable Costs

What is the break-even point?

• 200

• 600

• 800

• 400

What is the break-even point?

• 8,000

• 10,000

• 16,000

• 120,000

The fixed costs are:

• 100,000

• 18,000

• 160,000

• 20,000