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Cambridge IGCSE Business Studies

4.4.3Break-even analysis

Break-even analysis in Cambridge IGCSE Business Studies: what the syllabus expects you to know, the learning objectives and how to practise.
Subtopic38 practice questions2 lessons

Learning objectives

What the syllabus expects you to be able to do.

  1. 4.4.3.1Complete, amend and interpret a simple break-even chart.
  2. 4.4.3.2Calculate break-even output and the margin of safety and interpret them.
  3. 4.4.3.3Use break-even analysis to make decisions and explain its limitations.

Lessons

  • Break-even analysis: contribution and calculations

    40 min

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  • Break-even charts and the uses and limits of break-even

    35 min

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Sample question

A sample question on this topic. Answer it, check it, then read the worked answer.

Break-even analysis: sample question

1 mark

Fixed costs are US$9,000. Price is US$25 and variable cost is US$10 per unit. What is the break-even output?

Choose one answer

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