GCSE Business Studies/Break-Even Analysis

Sales Revenue edit

The sales revenue is how much a business makes by selling goods or providing a service. Sales revenue for a single product can be calculated like this:


Costs edit

Fixed costs edit

Fixed costs, also known as indirect costs or overheads, are costs that do not change depending on how much the firm sells. Some examples of fixed costs are:

  • Rent
  • Salaries
  • Loan repayments

Variable costs edit

Variable costs, also known as direct costs, change directly depending on how much a firm produces. Some examples of variable costs are:

  • Raw materials
  • Electricity