A level Business Revision - Break Even

In this A level Business revision video, we examine the break even formula, explaining how to calculate a business's break even level of output. This is one of the most frequently examined topics on the A level syllabus.
A level Business Studies Revision from TakingTheBiz.
See more of our videos: / takingthebiz

[@romillymason5627]

I would just like to say a massive thank you, I really really struggle with condensing my revision notes and your whiteboards are perfect to copy down while I watch your videos. Such a life saver!!!

[@TakingTheBiz]

Thank you so much for taking the time to leave a comment. I'm so glad the videos have been useful. Good luck with your revision.

[@tomthurston8397]

Thank you for these videos, one 8-minute video is more beneficial than a week of business lessons at school!

[@caseyrecci8428]

great confidence in the videos , makes it very easy to understand and learn , huge thanks

[@TakingTheBiz]

Thank you for such encouraging feedback. Hope they help with your revision. Good luck in your exams.

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A topic I struggle with, presented in an amazing manner. Thank you!

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[@humeyra5575]

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[@TakingTheBiz]

Good luck in your exam!

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4:33 "managing the stonk"

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[@TakingTheBiz]

You are most welcome. Thank you for leaving such a positive comment. I'm glad the videos were useful.

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[@teddypreston7799]

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[@DailyClip_Craze]

Almost 11pm the night before the actual Alevel exam wish me luck

[@samuela775]

what u get

[@max-gg9qk]

how did the exam go?

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Amazing

[@georgepostlethwaite9833]

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[@ys1r]

Thanks

[@joeharwood3383]

Thank You

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[@vincezaaa]

you teach with charisma, easier to remember information. One of my teachers aren't like this. She's not qualified to teach the subject

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im a week away from paper two AS and four days away from paper one AS ad im so scared but this is giving me the refresh i need lmao

[@aaronjohn6977]

watching this 4 hours before my exam :) Thank you sir!

[@max-gg9qk]

how did the exam go?

[@daigonmocs0785]

thanks to this video i finally know what im suppose to do when the best part of me was always you

[@dfsx7934]

THANK U I LOVE U

[@dancygandhi3119]

Sir please can you make a video on income statement and balance sheet chapter number 18! I'm an AS level student and I need this chapter

[@sara5814]

God bless you! Complete life-saver. My business exam is in 2 days wish me luck :)

[@d0ubleknott218]

Mine is tomorrow lmao good luck!

[@sara5814]

@@d0ubleknott218 Good Luck!! 111

[@dannybulgin6658]

Cheers sir

[@xcatherinex11]

Hi can you help me understand this more regarding how do you know what figures is right to use for the axis? Aswell as figuring out the total cost line in general. Ive tried doing many questions but when it comes to plotting the total fixed line ive eithier got the figures wrong on the axis as its more than i anticipated.

[@abeeraqayam680]

If the breakeven is less then how would you analyse that?is it good or bad to have less breakeven amount?

[@belalahmed4942]

bruh you look so dashing in that green top

[@PanookyDooky]

If I have multiple products I have to calculate the break even for each product? Thank you

[@marshelc]

do you cover BTEC Business unit 3 personal business and finance?

[@vila_jrav4425]

You are god

[@georgiangelov7258]

Thank you sir. Your videos are well explained. Anyhow, do you have a video on contribution and its usefulness? In particular I'm referring to A Level Year 2 Edexcel (2018) Business Specification, the Contribution topic.

[@georgiangelov7258]

In that topic there's also contribution and decision-making.

[@viralz5338]

@@georgiangelov7258 fat air

[@St.tracks]

rah, your a good teacher, is this still useful in . 2019 by the way . ?

[@TakingTheBiz]

YES

[@originallifeclothing4038]

what happens if you sell multiple products at different prices?

[@1nonokaka]

How do we calculate total contribution ? Also , the profit through breakeven graphs

[@TakingTheBiz]

Total contribution is pretty simple - it is the contribution per unit multiplied by the level of output you are producing. For example, if the contribution per unit is £5 and the business produces 5000 products, then the total contribution is £5 x 5000. As for showing profit through break even diagrams - that's tomorrow's video! Thanks for the question and thanks for watching.

[@jameswilkinson44]

Yes lad

[@ahmedshehzad3085]

Why is wages in the variable cost column and salary in the fixed cost? Thankyou

[@TakingTheBiz]

Wages are usually associated directly with the production of the product whereas salaries are commonly for jobs not associated with producing the product, such as marketing employees or accountants

[@uknown2402]

What exam board you follow ??

[@unique_ac7715]

So if the break even is at a lower amount, then that's good right? As you would be producing less units in order to reach your break even. Or is that wrong?

[@TakingTheBiz]

That's correct

[@PanookyDooky]

What if I don't have fixed costs?

[@mosesgodwin9710]

Please I will like to get an PDF copy on breaking even ?

[@michelllesawari4293]

Can I still use this in 2020

[@TakingTheBiz]

Yes - break even is timeless and this video was made for the current iteration of A levels. Good luck!

[@thomasperman2498]

I though contribution = Sales revenue per unit - variable costs per unit

[@TakingTheBiz]

I guess sales revenue per unit is the selling price of the product, so essentially it's the same formula

[@hamzaarshad3727]

did he fart at 7:46 XD

[@ankitkalluraya486]

1. Suppose Keynes, Inc is considering buying a machine that will generate revenues of $6 million annually for two years and the $2 million in the third year. After three years the machine is worthless. If Keynes, Inc buys the machine, it must make a deposit of $ 2 million today and pay a further $11 million two years from now. Keynes, Inc has a minimum acceptable rate of return policy on investments set at 5%. a. Using an Excel function, find the breakeven interest rate. Can someone confirm if this answer is 100%?

[@tdofeldt5742]

5:32

[@tdofeldt5742]

CPU measures how many units need to be sold to cover our fixed costs