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Break Even

Break Even

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Author: Matt Cox
Description:
  • For students to understand the three different methods of break even
  • Students to build on their knowledge of costs, revenues and profits to construct graphs of data
  • Students to analyze what causes the lines in a Break Even diagram to move and for a Break Even output to either increase or decrease.

A brief introduction in how and why businesses calculate the break even output with a guide through the three methods used.  I also use the graph part of the lesson to show some situation where the break even output may change when some of the variables for our business change.

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Tutorial

Break Even - easily explained

A 5 minute video explaining why break even is important to a business.

Source: Youtube.com

Increase in Rent

Video explaining the increase in rent

Source: Mr Cox

Fall in price of raw materials

What happens to our graph when we decrease the price of raw materials

Powerpoint from class

This was the Powerpoint we went through in class

Source: Mr Cox