G10 Break Even Analysis

• Business Studies
• Secondary Education

Tuesday, 21st of February 2023

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The total cost is all the money going out of a business.

1. true
2. false

The total revenue is all the money coming into the business.

1. true
2. false

If the total cost is less than total revenue, the business makes a ________.

1. profit
2. loss

If the total cost is more than total revenue, the business makes a _______.

1. profit
2. loss

A business wants to have less total costs than total revenue.

1. true
2. false

Building rent: 5300 AED

Electricity utility bill: 1590 AED

Water utility bill: 800 AED

Yearly website fee: 1350 AED

Delivery Fee: 750 AED

Materials to produce products: 13,000 AED

Calculate the variable cost for January for AlHaramain.
Building rent: 5300 - Electricity: 1590
Water: 800 per month
Yearly website fee: 1350
Delivery Fee: 750 Dirhams per month
Materials to produce products: 13,000

1. 16,140
2. 17490
3. 20,140
4. 22,790

Calculate the average cost for January for Al Haramain Perfumes.
Total Fixed Costs: 32,250
Total Variable Costs: 20,350
Total Output:5,500

1. 9.06 AED
2. 9.56 AED
3. 9.65 AED

(Total variable cost/ Output)

The Elegance Abaya factory in Ajman produced 1,000 abayas last month. The cost of raw materials was 12,000 AED, electricity (based on consumption) was 2,500 AED and hourly wages for workers were 4,500 AED. Other variable costs added up to 5,000 AED.
a) Calculate the total variable cost. b) Calculate the variable cost per unit.

If fixed costs are: 32,250 Variable costs are: 20,350 and total output is 5,500. Calculate the variable cost per unit.

1. 3.00 AED
2. 3.70 AED
3. 9.00 AED
4. 9.56 AED

make a slide that has an activity to practice calculating the contribution per unit

200

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