Business Studies - Break-Even

Business Studies - Break-Even

1. Break-Even

   • Fixed Assets/(average selling price per unit - variable cost per unit)
     • F/A-V
     • Break-Even graphs - Fixed Costs (straight line), Total Costs, Total Sales Revenue
       • Need to label!
   • Make a decision about selling...?
     • Up the price/Lower the price
       • More profit, may lose customers as price has suddenly increased
       • Risk, Advertise more, attract new customers, flood of customers = more profit
     • Knows when making a profit
     • Knows how much of an item needs to be sold in order to break-even