Business igcse edexcel

A Business that breaks even has total revenue of US$5 600 000 and fixed costs of US$2 000 000. Therefore the value of variable cost?

• US$ 2 000 000

• UD$5 600 000

• US$7 600 000

• US$3 600 000

A business charges US$25 per unit for its output. Fixed costs are US$1000 000 and variable costs are US$5 per unit. How much should the business produce and sell to break even?

• US$ 50 000

• Us$20

• 20 units

• 50 000 units

A Business breaks even when 5000 Units are produced. If price = US$20 and fixed costs are US$20000, then variable cost per unit is?

• US$ 16 per unit

• UsS50 per unit

• US$ 20 per unit

• US$ 4 per unit

An increase in fixed cost will do which of the following?

• Shift the break even point to the left

• make the total cost function steeper

• Shift the break even point to the right

• make the total cost function flatter

Wages paid to production workers is an example of which of the following?

• Current Asset

• Finance cost

• Business expense

• Cost of sales

A Business has revenue of US$239 500 cost of sales of US$ 154 000 and expenses of US$65 000. therefore, the value of operating profit is?

• US$ 20 500

• US$ 85 500

• US$ 393 500

• US$ 239 500

A statement of comprehensive income might be used to do which of the following?

• Calculate labour turnover

• Help make investment decisions

• Measure the value of assets in a business

• Calculate the liquidity ratio

Which of the following is a function of profit?

• A measure of global economic success

• Used to calculate the break even point

• Measure of business performance

• Measure of labour productivity

Gross profit is equal to which of the following?

• Operating profit + Revenue

• Revenue - Cost of Sales

• Revenue - operating profit

• Revenue + Cost of sales

A Business is likely to have sufficient working capital if the current ratio has between which of the following?

• 0 and 1

• 1 and 2

• 1.5 and 2

• 2 and 3