Mark has a business selling pens. He is trying to calculate his break even point for the current month. His fixed costs are £12,000. It costs him £2.10 to produce these pens and they sell for £2.70. How many pens does he need to sell?

Total Fixed Cost (£12,000) Divided by (Revenue per unit[£2.70] - Variable cost per unit[£2.10] = 60p)Break even point = £12,000 divided by 0.6 = 20,000 pens

AP
Answered by Aaron P. Business Studies tutor

1282 Views

See similar Business Studies GCSE tutors

Related Business Studies GCSE answers

All answers ▸

Identify and explain one advantage and one disadvantage of using text (SMS) messages as a method of internal communication.


John runs a sandwich shop in his local village and has 4 employees. Which of the following represents a variable cost to John? i) Insurance of the shop ii) Wages paid to his employees iii) Rent to the landlord iv) Gas due to heating


Explain how a business can use outsourcing. (2 marks)


Explain a benefit of using a) part-time staff in a business and b) full-time staff (3 marks each).


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences