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WalesBusinessQuick questions
Business Opportunities (AS Unit 1)
Quick questions on Revenue, costs, break-even and contribution - WJEC A-Level Business
4short 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 break-even?Show answer
The break-even output is the quantity at which total revenue exactly equals total cost, so the firm makes neither a profit nor a loss:
What is margin of safety?Show answer
The margin of safety shows how far sales can fall before the firm starts to make a loss:
What is q1?Show answer
Define the term contribution per unit. [2 marks]
What is q2?Show answer
A firm has fixed costs of £8,000, a selling price of £10 and variable costs of £6 per unit. Calculate its break-even output. [3 marks]
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