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Mastering Break Even Analysis
Break Even Analysis
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Slide 1:
Slide
Tourism
Foundation Degree
This lesson contains
14 slides
, with
interactive quiz
,
text slides
and
1 video
.
Lesson duration is:
90 min
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Items in this lesson
Break Even Analysis
Slide 1 - Slide
Learning Objective
Understand the concept of break-even analysis and its application in business decision-making
Carry out break even point calculations
Draw a break even chart on graph paper
Slide 2 - Slide
Has anyone studied break even before?
Yes
No
Slide 3 - Poll
Components of Break-Even Analysis
Fixed costs
Variable costs
Selling price
Slide 4 - Slide
Definition of Break-Even Analysis
Break-even analysis is a calculation used to determine the point at which
revenue received equals the costs
associated with receiving the revenue.
Slide 5 - Slide
Importance in Decision Making
Break-even analysis helps businesses in setting prices, determining the impact of cost changes, and making investment decisions.
Slide 6 - Slide
Break-Even Point Calculation
Fixed costs
_____________
Selling price per unit - Variable cost per unit
Slide 7 - Slide
Slide 8 - Video
Graphical Representation
Break-even analysis can be visually represented through a graph, showing the intersection of the revenue and cost lines.
Slide 9 - Slide
Slide 10 - Slide
www.bbc.co.uk
Slide 11 - Link
Example.....
A business that sells T-shirts knows that:
Its fixed costs are £400.
The selling price (per unit) is £10.
The variable costs (per unit) are £6.
So their BEP can be calculated as:
Slide 12 - Slide
Slide 13 - Slide
Practice Task and Assignment Task 4
Slide 14 - Slide
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