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Business & economics · Grades 9–12

Revenue, break-even and evidence · Revision sheet

Calculate only from the costs and assumptions provided.

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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.

Explain without looking

  1. Does positive projected profit guarantee enough cash at every moment?
  2. Why should a demand forecast be shown as uncertain rather than guaranteed?

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