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SingaporeBusiness StudiesQuick questions
Financial Information and Decisions
Quick questions on Costs, revenue and break-even explained: O-Level Business Studies
6short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is the break-even point?Show answer
The break-even point is the output at which total revenue = total cost. It is found by:
What is margin of safety?Show answer
The margin of safety is how far current (or planned) sales exceed the break-even point:
What is uses of break-even analysis?Show answer
Break-even analysis helps a business:
What is q1?Show answer
Define the term contribution per unit. [2 marks]
What is q2?Show answer
Fixed costs are 30 and the variable cost is $15. Calculate the break-even output. [2 marks]
What is q3?Show answer
Explain why a business might want a large margin of safety. [4 marks]
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