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Business & economics · Grades 9–12

Revenue, break-even and evidence

Calculate only from the costs and assumptions provided.

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Learn the idea

Revenue

Revenue is price multiplied by units sold in a simple one-product model.

Contribution

Contribution per unit is selling price minus variable cost per unit.

Break-even

Break-even units = fixed cost / contribution, rounded upward for whole units.

Limits

Demand, taxes, financing and other costs may be outside a classroom model.

Worked examples

A fictional item sells for 12 units and 30 are sold. Find revenue.

12 × 30 = 360.

360

Price is 15 units and variable cost is 9 per item. Find contribution per item.

15 − 9 = 6.

6

Check your understanding

  1. Fixed cost is 90 units and contribution is 6 per item. Find whole-unit break-even sales.

  2. If contribution per unit is negative, will simply increasing sales necessarily cover fixed costs?

    1. No.
    2. Yes, always.
    3. Only if the logo changes.

  3. Why should break-even calculations identify excluded costs?

Answers and marking notes

Answers and marking notes
  1. 15

    90/6 = 15 units.

  2. No.

    Each additional sale increases the loss under that model.

  3. The result can mislead if readers assume all expenses are included.

    State the model boundary.

Independent educational review required. Grade bands are approximate; these are not officially aligned curricula.