Break-Even Analysis
Technique determining minimum sales needed to cover all costs.
Formula
Break-Even Output = Fixed Costs ÷ Contribution per Unit
Real World
A new coffee shop in Manchester used break-even analysis to establish it needed to sell 150 cups daily before covering rent, wages, and supplies — informing its opening-hours decision.
Exam Focus
When 'analyse' appears, calculate break-even AND explain what the figure means for business decision-making.
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