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ZIMSEC O-Level Business Enterprise and Skills

7.5.8Break-even analysis

Break-even analysis in ZIMSEC O-Level Business Enterprise and Skills: what the syllabus expects you to know, the learning objectives and how to practise.
Subtopic38 practice questions2 lessons

Overview

Form 4: break-even point, profit and loss regions and margin of safety.

Learning objectives

What the syllabus expects you to be able to do.

  1. 7.5.8.1Explain break-even analysis and discuss its importance.
  2. 7.5.8.2Construct a break-even chart.
  3. 7.5.8.3Calculate the break-even point and the margin of safety for a business venture.

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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