DP Business Management Questionbank
5.5 Break-even analysis
Description
[N/A]Directly related questions
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18M.1.SL.TZ0.4b.i:
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.
Using the information in Table 3, calculate the break-even output for portable biomass sources of electricity (show all your working).
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18M.1.SL.TZ0.4b.ii:
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.
Comment on the usefulness to AS of break-even analysis.
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18M.2.HL.TZ0.2b.i:
Calculate:
the total contribution of existing meals sold per month (show all your working).
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18M.2.HL.TZ0.2b.ii:
Calculate:
the total profit or loss on existing meals for May 2018 (show all your working).
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18M.2.HL.TZ0.2b.iii:
Calculate:
the forecast profit or loss if Jill decides to make and sell gluten-free meals (show all your working).
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18N.2.SL.TZ0.2b.i:
Calculate the break-even level of output for PF for 2019 (show all your working).
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18N.2.SL.TZ0.2b.ii:
Construct a fully labelled break-even chart, to scale, for PF for 2019.
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18N.2.SL.TZ0.2b.iii:
Calculate the forecasted profit if PF sells 2400 chairs in 2019 (show all your working).
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18N.2.HL.TZ0.1a:
Describe one limitation of a break-even analysis.
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18N.2.HL.TZ0.1b.i:
Calculate the number of dolls that DD needs to sell to achieve a profit of $4000 (show all your working).
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18N.2.HL.TZ0.1b.iii:
Calculate the profit or loss in the first year if DD sells 400 dolls (show all your working).
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18N.2.HL.TZ0.1c:
Assuming that the quantity of dolls to be sold in the second year is 550 and costs remain unchanged, calculate the price per doll that DD would need to charge to make a $6500 profit.
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19M.2.SL.TZ0.2b.i:
Using the financial data for DuffJD for 2018, calculate the contribution per unit per item laundered (no working required).
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19M.2.SL.TZ0.2b.ii:
Using the financial data for DuffJD for 2018, calculate the margin of safety (no working required).
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19M.2.SL.TZ0.2c:
Draw a fully labelled break-even chart for DuffJD for 2018 using the data provided.
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19M.2.SL.TZ0.2d:
Explain how an increase in competition may affect DuffJD’s margin of safety.
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19N.2.SL.TZ0.1a:
Define the term margin of safety.
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19N.2.SL.TZ0.1b.i:
Using the financial data in Table 1, calculate the break-even level of output (show all your working).
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19N.2.SL.TZ0.1b.ii:
Using the financial data in Table 1, calculate the percentage of total costs that were fixed costs for last year (show all your working).
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19N.2.SL.TZ0.1b.iii:
Using the financial data in Table 1, calculate the level of profit for SSH at 2018’s level of production (show all your working).
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19N.2.SL.TZ0.1c:
Explain how the introduction of new production methods will affect the total cost line in SSH’s break-even chart.
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19N.2.HL.TZ0.2b.i:
Calculate, for MWF, the break-even level of output for 2020.
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19N.2.HL.TZ0.2b.ii:
Construct a fully labelled, to scale, break-even chart for MWF for 2020.
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19N.2.HL.TZ0.2b.iii:
Calculate the profit if MWF sells 3600 window fans in 2020.
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20N.2.SL.TZ0.5c:
Explain one advantage and one disadvantage of using a break-even analysis for PP.
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21M.2.SL.TZ0.1b.ii:
Using Figure 1 calculate forecasted profit if sales are 25 000 units in 2021 (show all your working).
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21M.2.SL.TZ0.1b.iii:
Using Figure 1 calculate the total contribution in 2021 if Hafs only sells 20 000 units (show all your working).
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21M.2.SL.TZ0.1c:
Explain whether an increase in total fixed costs has an impact on unit contribution.
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21M.2.HL.TZ0.2b:
Using total contribution, calculate the forecasted total profit for SSL before the introduction of the new promotional strategy (show all your working).
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21M.2.HL.TZ0.2c:
Construct a fully labelled break-even chart for SSL for before the new promotional strategy is introduced (show all your working).
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21N.2.SL.TZ0.1b:
Construct a fully labelled break-even chart, to scale, for JG for 2022.
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21N.2.SL.TZ0.1c:
Calculate JG’s level of profit if sales are 20 000 units in 2022 (show all your working).
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21N.2.SL.TZ0.1d:
Explain how the changes that Jill expects in fixed and variable costs in 2023 would affect the total costs line of the break-even chart from your answer to (b).
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21N.2.HL.TZ0.2b.i:
Using the selected financial data in Table 2, calculate for SP for 2020:
the break-even level of output (show all your working).
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21N.2.HL.TZ0.2b.ii:
Using the selected financial data in Table 2, calculate for SP for 2020:
the margin of safety (show all your working).
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21N.2.HL.TZ0.2b.iii:
Using the selected financial data in Table 2, calculate for SP for 2020:
the net profit (show all your working).
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21N.2.HL.TZ0.2c:
Explain how the impact of the increase in rent and the forecast increase in sales in 2021 could affect SP’s profitability.
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22M.2.SL.TZ0.1b.ii:
Using Table 1, calculate the break-even level of output (no working required).
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22M.2.SL.TZ0.1b.i:
Using Table 1, calculate the contribution per unit (show all your working).
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22M.2.SL.TZ0.1c.i:
If AXL produces 75 million cans in 2023, using Table 1, calculate the margin of safety (no working required).
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22M.2.SL.TZ0.1c.ii:
If AXL produces 75 million cans in 2023, using Table 1, calculate the profit (show all your working).
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22M.2.HL.TZ0.1b.ii:
Using the information provided above and in Table 1, calculate the monthly profit if Roscas sells sugar donuts and chocolate-filled donuts (show all your working).
Sub sections and their related questions
5.5.1 Total contribution versus contribution per unit
-
18M.2.HL.TZ0.2b.i:
Calculate:
the total contribution of existing meals sold per month (show all your working).
-
18M.2.HL.TZ0.2b.ii:
Calculate:
the total profit or loss on existing meals for May 2018 (show all your working).
-
18M.2.HL.TZ0.2b.iii:
Calculate:
the forecast profit or loss if Jill decides to make and sell gluten-free meals (show all your working).
-
18N.2.SL.TZ0.2b.iii:
Calculate the forecasted profit if PF sells 2400 chairs in 2019 (show all your working).
-
19M.2.SL.TZ0.2b.i:
Using the financial data for DuffJD for 2018, calculate the contribution per unit per item laundered (no working required).
-
21M.2.SL.TZ0.1b.iii:
Using Figure 1 calculate the total contribution in 2021 if Hafs only sells 20 000 units (show all your working).
-
21M.2.SL.TZ0.1c:
Explain whether an increase in total fixed costs has an impact on unit contribution.
-
21M.2.HL.TZ0.2b:
Using total contribution, calculate the forecasted total profit for SSL before the introduction of the new promotional strategy (show all your working).
-
22M.2.SL.TZ0.1b.i:
Using Table 1, calculate the contribution per unit (show all your working).
-
22M.2.SL.TZ0.1c.ii:
If AXL produces 75 million cans in 2023, using Table 1, calculate the profit (show all your working).
5.5.2 A break-even chart and the following aspects of break-even analysis: Break-even quantity/point, Profit or loss, Margin of safety, Target profit output, Target profit, Target price
-
18M.1.SL.TZ0.4b.i:
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.
Using the information in Table 3, calculate the break-even output for portable biomass sources of electricity (show all your working).
-
18M.2.HL.TZ0.2b.iii:
Calculate:
the forecast profit or loss if Jill decides to make and sell gluten-free meals (show all your working).
-
18N.2.SL.TZ0.2b.i:
Calculate the break-even level of output for PF for 2019 (show all your working).
-
18N.2.SL.TZ0.2b.ii:
Construct a fully labelled break-even chart, to scale, for PF for 2019.
-
18N.2.SL.TZ0.2b.iii:
Calculate the forecasted profit if PF sells 2400 chairs in 2019 (show all your working).
-
18N.2.HL.TZ0.1b.i:
Calculate the number of dolls that DD needs to sell to achieve a profit of $4000 (show all your working).
-
18N.2.HL.TZ0.1b.iii:
Calculate the profit or loss in the first year if DD sells 400 dolls (show all your working).
-
18N.2.HL.TZ0.1c:
Assuming that the quantity of dolls to be sold in the second year is 550 and costs remain unchanged, calculate the price per doll that DD would need to charge to make a $6500 profit.
-
19M.2.SL.TZ0.2b.ii:
Using the financial data for DuffJD for 2018, calculate the margin of safety (no working required).
-
19M.2.SL.TZ0.2c:
Draw a fully labelled break-even chart for DuffJD for 2018 using the data provided.
-
19N.2.SL.TZ0.1a:
Define the term margin of safety.
-
19N.2.SL.TZ0.1b.i:
Using the financial data in Table 1, calculate the break-even level of output (show all your working).
-
19N.2.SL.TZ0.1b.ii:
Using the financial data in Table 1, calculate the percentage of total costs that were fixed costs for last year (show all your working).
-
19N.2.SL.TZ0.1b.iii:
Using the financial data in Table 1, calculate the level of profit for SSH at 2018’s level of production (show all your working).
-
19N.2.HL.TZ0.2b.i:
Calculate, for MWF, the break-even level of output for 2020.
-
19N.2.HL.TZ0.2b.ii:
Construct a fully labelled, to scale, break-even chart for MWF for 2020.
-
19N.2.HL.TZ0.2b.iii:
Calculate the profit if MWF sells 3600 window fans in 2020.
-
21M.2.SL.TZ0.1b.ii:
Using Figure 1 calculate forecasted profit if sales are 25 000 units in 2021 (show all your working).
-
21M.2.HL.TZ0.2c:
Construct a fully labelled break-even chart for SSL for before the new promotional strategy is introduced (show all your working).
-
21N.2.SL.TZ0.1b:
Construct a fully labelled break-even chart, to scale, for JG for 2022.
-
21N.2.SL.TZ0.1c:
Calculate JG’s level of profit if sales are 20 000 units in 2022 (show all your working).
-
21N.2.HL.TZ0.2b.i:
Using the selected financial data in Table 2, calculate for SP for 2020:
the break-even level of output (show all your working).
-
21N.2.HL.TZ0.2b.ii:
Using the selected financial data in Table 2, calculate for SP for 2020:
the margin of safety (show all your working).
-
21N.2.HL.TZ0.2b.iii:
Using the selected financial data in Table 2, calculate for SP for 2020:
the net profit (show all your working).
-
22M.2.SL.TZ0.1c.i:
If AXL produces 75 million cans in 2023, using Table 1, calculate the margin of safety (no working required).
-
22M.2.SL.TZ0.1c.ii:
If AXL produces 75 million cans in 2023, using Table 1, calculate the profit (show all your working).
-
22M.2.HL.TZ0.1b.ii:
Using the information provided above and in Table 1, calculate the monthly profit if Roscas sells sugar donuts and chocolate-filled donuts (show all your working).
5.5.3 The effects of changes in price or cost on the break-even quantity, profit and margin of safety, using graphical and quantitative methods
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19M.2.SL.TZ0.2d:
Explain how an increase in competition may affect DuffJD’s margin of safety.
-
19N.2.SL.TZ0.1c:
Explain how the introduction of new production methods will affect the total cost line in SSH’s break-even chart.
-
21N.2.SL.TZ0.1d:
Explain how the changes that Jill expects in fixed and variable costs in 2023 would affect the total costs line of the break-even chart from your answer to (b).
-
21N.2.HL.TZ0.2c:
Explain how the impact of the increase in rent and the forecast increase in sales in 2021 could affect SP’s profitability.
-
22M.2.SL.TZ0.1c.ii:
If AXL produces 75 million cans in 2023, using Table 1, calculate the profit (show all your working).
5.5.4 Limitations of break-even as a decision-making tool
-
18M.1.SL.TZ0.4b.ii:
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.
Comment on the usefulness to AS of break-even analysis.
-
18N.2.HL.TZ0.1a:
Describe one limitation of a break-even analysis.
-
20N.2.SL.TZ0.5c:
Explain one advantage and one disadvantage of using a break-even analysis for PP.
-
22M.2.SL.TZ0.1c.ii:
If AXL produces 75 million cans in 2023, using Table 1, calculate the profit (show all your working).