Tools for success in business - Break Even Point

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
• profit
• loss
• 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 and explain the associated risks to a business of not completing a break-even analysis 

• Present the given information graphically on a break-even chart

Learners should for a DISTINCTION (A)

• 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. 

Homework 3 Week 3