Practice Break-even Analysis and Marginal Costing - 22 | 22. Break-even Analysis and Marginal Costing | Management 1 (Organizational Behaviour/Finance & Accounting)
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22 - Break-even Analysis and Marginal Costing

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define Break-even Point.

💡 Hint: What happens when a business covers all its expenses?

Question 2

Easy

What do fixed costs represent?

💡 Hint: Think about rent or salaries.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the Break-even Point?

  • A point of profit
  • A point where total revenue equals total cost
  • A measure of fixed costs

💡 Hint: Think about when a company is making no money or losing money.

Question 2

True or False: Fixed costs change with production levels.

  • True
  • False

💡 Hint: Think of rent; does it change if you manufacture more or less?

Solve 3 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A sushi restaurant incurs fixed costs of ₹80,000 per month. The variable cost to prepare a single sushi plate is ₹200, and the selling price is ₹500. Calculate the Break-even Point in units and the Margin of Safety if the restaurant sells 1,000 plates in a month.

💡 Hint: Transform costs into quantities; think about their implications on quantity sold.

Question 2

A tech startup decides to launch a new app with fixed costs of ₹120,000 and variable costs of ₹150 per download. The app will sell for ₹300. Calculate the BEP in ₹, and discuss how the Margin of Safety would impact their pricing strategy.

💡 Hint: How much do they need to bring in to start generating profit?

Challenge and get performance evaluation