1) What is break even? a) It is when a business sells enough units to cover the business' costs b) It is when a business makes enough money to make a profit c) It is when a business makes a loss 2) Choose 2 options that are fixed costs a) Rent b) Salaries c) Ingredients d) Packaging 3) Choose 2 options that are variable costs a) Ingredients b) Electricity c) Packaging d) Owner's salary 4) How much is the sales revenue? A business sells 10 units and the selling price per unit is £5 a) 10 x £10 = £100 b) 10 x £5 = £100 c) 10 x £5 = £50 d) 10 x £20 = £50 5) How much is the Gross Profit? A business sales £100,000 and the Cost of Sales is £20,000 a) Gross profit = Sales (£20,000)- Cost of Sales (£100,000) = -£80,000 b) Gross Profit = Sales (£100,000)- Cost of Sales (£20,000) = £80,000 c) GP= Sales (£50,000)- Cost of Sales (£100,000) = -£80,000 6) How much is the Net Profit? Gross Profit of £100,000 and expenses of £30,000 a) Net Profit = Gross Profit (£50,000)- expenses(£100,000) = -£80,000 b) Net Profit= Gross Profit (£100,000)- expenses (£30,000) = £70,000 c) Net Profit= Gross Profit (£100,000)- expenses(£40,000) = £70,000 7) Choose the formula for the break even a) Variable cost per unit - Selling price per unit /(divided by) Fixed Costs b) elling price per unit - Variable cost per unit - (divided by) Fixed Costs c) Fixed Costs / (Selling price per unit - Variable cost per unit)

Break Even and Costs

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