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Break-Even and Contribution

Edexcel 9EB0T1-4bA-levelLesson packSubscription
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  • 12 questions
  • 39 marks
  • about 60 minutes
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Question types: calculation, multiple choice, fill the gap, matching, short answer.

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About this resource

Edexcel Economics B (9EB0) Theme 1, Unit T1-4 (spec ref 1.6.2) — contribution per unit, total contribution, the break-even point in units and revenue, the break-even chart, margin of safety, the effect of price/cost changes on break-even, and the limitations of break-even analysis.

18 slides.

Lesson outline

  1. Do Now — Retrieval
  2. Contribution Per Unit — A Worked Example
  3. Hinge Check — Is Contribution the Same as Profit?
  4. The Break-Even Point — In Units and In Revenue
  5. Hinge Check — Break-Even Units vs Break-Even Revenue
  6. Guided Practice — Reading a Break-Even Chart
  7. Anatomy of a Break-Even Chart
  8. Hinge Check — Margin of Safety
  9. What Happens to the Break-Even Point When Things Change?
  10. Hinge Check — Rising Costs and Break-Even
  11. Limitations of Break-Even Analysis
  12. Hinge Check — Limitations
Unit bundleTheme 1 · Markets, consumers and firms
Part of: Theme 1 · Markets, consumers and firms: the whole unitEvery resource in the unit in one zip.

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