Business Studies GCSE Unit 3 - Breakeven Analysis

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  • Created by: Heather
  • Created on: 29-05-12 09:46

Breakeven Analysis

Revision Notes

  • In the production of goods, or provision of services, there are costs
  • Costs may be fixed or variable.

Total Costs = Fixed Costs + Variable Costs

  • Fixed costs do not vary with output, eg. rent. Thye are paid whether or not a business is producing goods, and regardless of how much a business is producing.
  • Variable costs do change with output, eg. raw materials. The more you make the higher the variable costs.
  • Semi-variable costs vary with output, but not directly. Eg. a business may need…


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