Lesson Objectives To know and understand what break even means. To know how to draw and label a break even chart. To understand what break even shows and.

Slides:

Advertisements

Similar presentations

Accounting and finance

Advertisements

Break Even Michelle Hopkinson  Correctly calculate break even for a business provided  Correctly create break even charts for financial data provided.

Break-even ‘SPLAT!!!’. is all the money that comes into a business. Many businesses keep their money in a bank account that pays them a regular income..

Break-Even Analysis This presentation provides an overview of the key points in this chapter. Note for tutors: If you wish to print out these slides, with.

Using the PowerPoint and any notes from this lesson as well as the the text book complete the following in WORD: 1. Explain what breakeven is (p99) 2.

1 Calculating a break-even point Aim: Students to be able to produce a breakeven graph Homework: Complete hand out.

© Business Studies Online “A firm Breaks Even if it doesn’t make a profit or a loss” In other words profit = 0 For this to happen the money coming into.

Unit 5 Operations Management

Break-Even Chart A Business supplies the following figures about its activities: Fixed Costs: = €300,000 Variable Cost: = €20 per unit Forecast output.

Edexcel GCSE Business Break Even.

Reading Strategies ‘Unlocking the Text’. Revenue is all the money that comes into a business. Interest: Many businesses keep their money in a bank account.

3.3 Break-even Analysis.

IGCSE Economics 4.2 Costs of Production.

Breakeven analysis. Key terms (1) Before we start studying breakeven it is essential that you understand some key terms: Breakeven is the point at which.

4.2.3 Explain, Interpret and Use a Break-Even Chart

Unit 3 Financial Forecasting in Business P4 P5 M2 D1 Break Even

Chapter 32: BREAK EVEN.

Break-even L:\BUSINESS\GCE\Unit 2\Break even point.xls.

Todays Lesson - Objectives  To be able to interpret a breakeven chart  To understand how to calculate a margin of safety.

Starter. DRAWING BREAK-EVEN CHARTS Part 8 Lesson Objective To be able to draw a break-even chart. To be able to interpret a Break-even chart.

B REAKEVEN CHARTS S TEP BY S TEP. S TEP ONE Find your 4 key pieces of info 1. Fixed Costs 2. Selling Price 3. Variable Costs 4. Forecast Output Write.

TOPIC:Topic 5: Operations Management LESSON TITLE:Break-even Analysis COMPETENCY FOCUS: Key Skills (L5): you will be able to develop your numeracy skills.

BREAKEVEN ANALYSIS An important tool for management decision making.

1 Calculating a break-even point Calculate the break-even quantity, profit and margin of safety Use these methods to analyse the effects of changes in.

SIMULATION MODELLING. Your exam Lesson objectives To be able to define and understand: Definition of a simulation model. Advantages and disadvantages.

Draw a line through the points A(1,-2) and D(4,4). Find the coordinates of 2 more points on the line.

K X not 3 5 Revenues, costs and profits Richard Repairs – your local garage repair service. Reminder for November and December.

Break-Even Analysis. Useful for: Estimating the future level of output they need to produce in order to break-even Assess the impact of planned price.

Break Even Basics “A firm Breaks Even if it doesn’t make a profit or a loss” In other words profit = 0.

BUSS 1 Financial planning: using breakeven analysis to make decisions.

LEARNING AIM B: Understand how businesses plan for success.

Break-Even Very important concept for the exam For some of you it will be building on prior knowledge.

Learning Objectives To develop your understanding of Break-even analysis To develop your understanding of Break-even analysis To be able to identify the.

BREAK-EVEN (BE) Unit 2 Business Development Finance GCSE Business Studies.

Chapter 12 Cost-Volume-Profit Analysis. Chapter 122 Chapter 12: Objectives Define break-even point (BEP) and cost-volume-profit (CVP) analysis and recognize.

Calculating Marginal Utility. Marginal Utility Is the extra satisfaction generated from consuming one more unit of a good Is the extra satisfaction generated.

Financial planning: break-even. Syllabus Candidates should be able to: define contribution and contribution per unit (selling price – variable cost per.

Lesson Objectives All students will understand Most students will

Fundamental Managerial Accounting Concepts

Learning intention Understand the concept of Break-even and the assumptions on which it is based.

GCSE Business Studies Unit 2 Developing a Business

Learn to solve problems involving percent of change.

Breakeven and Breakeven Charts

The Heart & Soul of Market Economics

GCSE Business Break Even.

Break Even Analysis All: Understand / review what is break even analysis Most: calculate and present break even Some: Explain how break even is an internal.

Starter What’s the story? Title: Break-Even.

Starter Activity Complete the worksheet provided by your teacher!

SLOPE = = = The SLOPE of a line is There are four types of slopes

ECONOMICS: September 18 FMQ from Ch. 1-3 Test

Lesson 15-2 Determining Breakeven

Drawing a Break Even.

ECONOMICS: February 5 Warm-up: Draw a two column table for video games. Label the first column “Price” and add the following values in the column: $80,

Links Keywords C3 Chemical Reactions 

A graphing calculator is required for some problems or parts of problems 2000.

A what level of production does the business start to make a profit?

Break-Even Chart A Business supplies the following figures about its activities: Fixed Costs: = €300,000 Variable Cost: = €20 per unit Forecast output.

ECONOMICS: September 19 Introductory Unit Video: Types of Markets

SUBSTITUTION At the end of this lesson you should :

Ch. 12, 13, and 17 Test is next Friday

ENGINEERING ECONOMICS

Lesson 15-2 Determining Breakeven

Breakeven charts Step by Step

Cost & Management Accounting

Presentation transcript:

Lesson Objectives To know and understand what break even means. To know how to draw and label a break even chart. To understand what break even shows and how to calculate it using contribution formula. To understand how changes in price and costs affect break even.

What does Break Even Mean?

A Break Even Chart

Drawing Break Even Graphs The exam specifies that you must be able to draw and correctly label a break even graph! Complete “Spike’s Shirts” and “DCR Cola” to learn how to do this Discuss How would a change in price and costs affect Spike Shirts’ break even point?

Using a Formula to Calculate Break Even Using a graph to calculate break even is time consuming. It is easier to use a break even formula

The Break Even Formula (Contribution Method)

The Margin of Safety

Is Break Even Analysis Really That Useful For a Business?