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ScotlandBusiness ManagementQuick questions

Management of People and Finance

Quick questions on Costs, break-even point and margin of safety - SQA National 5 Business Management

3short 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 q1?
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State the difference between a fixed cost and a variable cost. [2 marks]
What is q2?
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A product sells for £10\pounds 10, variable cost is £6\pounds 6, fixed costs are £2000\pounds 2000. Calculate the break-even point. [3 marks]
What is q3?
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If the firm in Q2 sells 650 units, calculate the margin of safety. [2 marks]

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