Hi Year 12
I have listed below the skills that you need for the different grades that are available.
Learners should for a PASS (C):
- Be able to define break-even - the point that a business has made enough money through product sales to cover the costs of making the product (no profit and no loss)
- Be able to interpret (point out or identify) from a break-even chart: the
- break even point
- variable costs
- fixed costs
- total revenue
- total costs
- margin of safety
- Be able to calculate the break-even (formula will be given in the given assessment) using method 1, 2 or both
Todays note pack and activities can be found here
Learners should for a MERIT (B)
- Be able to analyse and explain the value and importance of break-even analysis to businesses when planning for success
- Analyse the effect on the break-even point if sales or (fixed and variable) costs change, and explain the impact of these changes on the business.