3.5.2 Break-Even Analysis

What is the fixed cost according to the diagram?

• £2000

• £2500

• £3000

• £3500

At what output level does the break-even point occur according to the diagram?

• 100 units

• 150 units

• 200 units

• 250 units

What is the revenue per unit as shown in the diagram?

• £20

• £25

• £30

• £35

According to the diagram, what happens when the output is below the break-even point?

• Profit

• Loss

• No profit, no loss

• Fixed costs increase

What is the break-even output according to the graph?

• 50 units

• 100 units

• 150 units

• 200 units

What is the fixed cost as shown in the graph?

• £1000

• £2000

• £3000

• £4000

What is the revenue per unit according to the graph?

• £25

• £30

• £35

• £40

Which of the following equations represents the total costs as shown in the graph?

• Total costs = Fixed costs + variable costs

• Total costs = Fixed costs - variable costs

• Total costs = Fixed costs * variable costs

• Total costs = Fixed costs / variable costs

What does the break-even point represent in the given diagram?

• The point where total costs equal total revenue

• The point where fixed costs are minimized

• The point where actual output is maximized

• The point where revenue is zero

In the diagram, what does the margin of safety indicate?

• The difference between actual output and break-even output

• The difference between total costs and fixed costs

• The difference between revenue and total costs

• The difference between fixed costs and variable costs