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Edexcel IGCSE Business Studies 3.3.2 Break Even Analysis Questions

Practise calculating and recognising break-even output from formulae, cost data and charts, then linking changes in costs or prices to the result.

Syllabus
First assessment 2019
Course
Business Studies 4BS1

Exam points

  • calculate break-even output from fixed costs, selling price and variable cost data
  • recognise on a chart where total costs and total revenue are equal
  • predict how higher variable costs, fixed costs or selling price change break-even output

Edexcel IGCSE Business Studies 3.3.2 Break Even Analysis Questions question 1

[Maximum number: 1]

IKEA is a well-known home furniture retailer with stores throughout the world. It was started in 1943 by Ingvar Kamprad when he was given some money by his father for doing well at school. He wanted to produce furniture at a price that people could afford to buy.

He realised that transporting furniture to customers was difficult as goods were often damaged. He developed flat packs to avoid damage. A flat pack contained all the materials needed to self-assemble a table, a chair or a bed.

All IKEA stores are run as franchises.

Which one of the following are equal in a break-even graph?

Select one answer.

A

Fixed costs and variable costs

B

Fixed costs and revenue

C

Total costs and fixed costs

D

Total costs and revenue

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