G10 BREAK EVEN POINT calculation 2

• Business Studies
• Secondary Education

Tuesday, 6th February 2024

1. To recognize the purpose of break-even point.

2. To work on the Market Day project tasks.

Calculate the variable cost per unit in February for Areej juice if:
fixed costs are 5,550 AED, variable costs are 3,300 AED and the total output is 1,500.

1. 2.2 AED
2. 5.8 AED
3. 4,955 AED
4. 8,325 AED

What is the break-even point?

1. It is the exact number where total costs equals total revenue.
2. It is the number of revenue divided by costs.

Why do we use the break-even point?

1. To know how many products to sell to make a profit.
2. To know which method of production to use.
3. To know how much the total costs are.

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

How do we calculate the break-even point?

1. 1. selling price per unit - variable cost per unit 2. total fixed costs/ contribution per unit
2. 1. total revenue/ total fixed costs 2. fixed costs/ average costs

If the selling price per unit = Dh16
The variable cost per shampoo bottle = Dh4
Total fixed costs = Dh4,000
How much will the contribution per bottle be?

1. 12
2. 32
3. 40
4. 64

If the selling price per unit = Dh16
The variable cost per bottle = Dh4
Total fixed costs = Dh4,000
Contribution Per Unit= Dh12
How much will the break-even point be?

1. 203
2. 230
3. 303
4. 333

200

forms.office.com

Why do we use the break-even chart?

1. to show where all the costs are
2. to show where the break-even point is
3. to show the number of output