A Level Business Break Even Analysis HelpWatch
I’ll attach a pic below of a list of pro’s and cons which my teacher gave us but I don’t rlly understand most points so I’ll highlight them and can someone plz explain them or if it’s incorrect then correct it plz
Also could this be a con:
It suggest that only one product is sold by the business however realistically they would have a wide product portfolio which the BEA doesn’t take into account?
Is this kinda correct? If not then correct plzz
Ok the highlighted advantage I get
Because we’ve also learnt how the BEP changed when variables change
But then why is the disadvantage FC can vary
Coz with BEA it consideres changes as I mentioned above
Anyone get me? I hope u do
Also explain those last two highlighted points plz
Take a cupcake shop for example
On a normal day, the cupcakes would cost £4.50
- The fixed costs are £450
- The costs of making the cupcake are £2.50
So using the equation the breakeven output is
Fixed costs/ contributions
- So to breakeven the output has to be: 225 cupcakes
Yet on Tuesdays, the owner takes £1.00 off so, therefore, the cupcake costs £3.50
Using the same costs the breakeven=
Break-even output= 450 cupcakes
So you cannot just use the breakeven for the normal price as this states that fewer cupcakes need to be sold to breakeven but indeed if the price changes this is not the case- in this case, more need to be sold
The last bullet point basically states that the model tells you how many units need to be sold i.e 10, yet will the business actual achieve these? It is all good saying that the business should sell 10 units but will it actually - this model doesn't promise that the business will achieve these sales, but just says how many it should achieve
- please as if you do not understand what I have written hahaha
But basically I wanna do business at uni and in the future and rn at a levels it’s my worst subject....
Not my worst but my lowest grade is in that
We r doing theme 1 and 2 this yr
Any tips or suggestions?
Lool Yh it can be hard giving advice watever but
It’s just the long ads markerrrssss
Our longest is 20!
You k a great thing ive recently done is follow tutor2u for my subjects
Eg tutor2u business coz it sends useful articles and reminds u of workshops they have (which u pay for)
Lol I haven’t read the articles yet but wenever i have time
It’s more useful folloeing the exam board
Eg I do psychology and so I follow A Level Psychology
That’s v useful but I couldn’t find it for business (my spec)
Maybe there will be for AQA idk
Hope I helped!