CAIE IGCSE Business Studies 4.4.3 break-even analysis
Practise break-even questions by reading charts, calculating output or margin of safety and using the result to justify a choice.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- Define break-even as the output where total revenue equals total cost.
- Calculate break-even output or margin of safety from cost and revenue data.
- Use break-even results to justify production choices, price changes or risk levels.
4.4.3—Break-even analysis question 1
Nancy wants to be an entrepreneur. She has analysed market research data and decided to start up a book shop. Nancy has identified a suitable location and prepared a business plan. Nancy is calculating her total costs. She will use this information to help her complete a break-even chart as shown in Figure 2.1. Nancy is also considering using e-commerce.
Break-even chart for Nancy's new business
Identify X and Y.
X:
Y:
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