GCSE Business Studies/Break-Even Analysis

Sales RevenueEdit

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:



Fixed costsEdit

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 costsEdit

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