Break-even

What is the formula for Revenue?

• Price x Quantity sold

• Fixed costs + Variable costs

• Costs x Quantity

• Income stream

Which of the following is an example of a fixed cost?

• Salaries

• Bills per product sold

• Materials

• Packaging

What is the formula for Total Costs?

• Variable costs - Fixed costs

• Variable costs + Fixed costs

• Selling price + Fixed costs

• Variable costs X Fixed costs

On a graph, the break even point is?

• Where the fixed costs & variable costs lines cross

• Where the sales revenue & total costs lines cross

• Shown by the area of profit

• The margin of safety

The break-even point is measured by

• Revenue

• Sales

• Profit

• Output

The break-even formula is

• Fixed costs / (variable costs - total costs)

• Fixed costs / (selling price - variable costs)

• Contribution / by fixed costs

• Fixed costs - revenue

Ellie is starting a new business making pies. She needs to work out how many pies she needs to sell to break even. Ellie plans the pies for £1.25 each. The ingredients and packaging costs 50p and her fixed costs are £1524 per month. How many units would Ellie need to sell to break even?

• 75 pies

• 2032 pies

• £75

• £2032

Margin of safety is?

• Actual sales - break even sales

• Fixed costs - selling price

• Actual sales + break even sales

• Actual sales - Fixed costs

If there is an increase in sales, what will happen to the margin of safety?

• Increase

• Decrease

• Remain the same

If there is a price increase what will happen to the break-even point?

• It falls

• It rises

• It stays the same