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Explain the meaning of break-even [A02]
Explain what contribution is and why is it important in understanding break-even analysis? [AO2]
Analyze the three generic ways that profits can be increased? [AO2]
State the two formulae for calculating break-even. [AO4]
Outline the difference between he break-even point and the business, the break-even quantity. [AO2]
What is the margin of safety and how is it calculated? [AO4]
BE A CRITICAL THINKER: [AO3]
BE A CRITICAL THINKER: [AO3]
Examine the limitations of break-even analysis.
EXAM TIPS
EXAM TIPS
- Always show your calculation workings
- Create a tidy chart - using a ruler
- Use proper and accurate labels on the chart
- Comment on your findings
- Remember: A quantitative analysis provide managers with answer, but a responsible manager will also consider qualitative considerations and reflect on the decision and its limitation.
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