Interpreting break-even charts:

• Match the financial concept with its definition on a break-even chart:

  Total Revenue ↔️ Income from sales

  Break-even point ↔️ Total revenue = total costs

  Profit ↔️ Total revenue > total costs

  Loss ↔️ Total revenue < total costs
• What is the definition of the break-even point?

  Total revenue equals total costs
• Match the financial concept with its definition:

  Break-even point ↔️ Total revenue = total costs

  Profit ↔️ Total revenue > total costs

  Loss ↔️ Total revenue < total costs
• What are fixed costs in a break-even chart?

  Costs that do not change
• What does the total revenue line represent on a break-even chart?

  Income from sales
• What is the characteristic of fixed costs on a break-even chart?

  They do not change
• How does total revenue change as output increases on a break-even chart?

  Increases linearly
• The break-even point is the level of output where total revenue equals total costs
• Arrange the following financial concepts in order from lowest to highest level of output or sales:

  1️⃣ Loss

  2️⃣ Break-even point

  3️⃣ Profit
• Variable costs are costs that increase as output increases
• The break-even point occurs where total revenue equals total costs
• Variable costs change as the level of output changes.
• A business makes a profit when total revenue exceeds total costs.


  True
• What type of line represents fixed costs on a break-even chart?

  Horizontal line
• Fixed costs do not change with the level of output.


  True
• The break-even point is where total revenue equals total costs
• Fixed costs on a break-even chart are represented by a horizontal line
• The total revenue line on a break-even chart increases in a linear fashion
• The total revenue line on a break-even chart represents the income generated from sales
• The break-even point is the level of output where total revenue equals total costs.

  True
• Steps to identify the break-even point on a break-even chart:

  1️⃣ Find where the total revenue line and total cost line intersect

  2️⃣ Note the output level at this point on the X-axis

  3️⃣ The output level is the break-even level of output or sales
• The loss region on a break-even chart indicates that total costs exceed total revenue.


  True
• At the break-even point, total revenue equals total costs, resulting in neither profit nor loss.


  True
• Total revenue on a break-even chart represents the income generated from sales
• What does the fixed costs line look like on a break-even chart?

  Horizontal line
• What does the break-even point represent in terms of total revenue and total costs?

  Total revenue equals total costs
• What is the significance of the intersection of the total revenue and total costs lines on a break-even chart?

  Break-even point
• The margin of safety indicates how much sales can decrease before a business starts making losses.


  True
• Match the concept with its definition:

  Break-even point ↔️ Total revenue = total costs

  Profit ↔️ Total revenue > total costs

  Loss ↔️ Total revenue < total costs
• The break-even point is the level of output where total revenue equals total costs.


  True
• A business makes a profit when total revenue is greater than total costs.

  True
• Total costs are the sum of fixed costs and variable costs.


  True
• A loss occurs when total revenue is less than total costs.


  True
• Total costs on a break-even chart are calculated by adding fixed costs and variable costs.

  True
• Below the break-even point, total revenue is less than total costs, resulting in a loss.
• The fixed cost line on a break-even chart remains constant regardless of the level of output.
• Match the cost line with its definition:

  Fixed Costs ↔️ Costs that do not change with output

  Total Costs ↔️ Sum of fixed and variable costs
• Order the financial concepts based on the relationship between total revenue and total costs:

  1️⃣ Break-even point (total revenue = total costs)

  2️⃣ Profit (total revenue > total costs)

  3️⃣ Loss (total revenue < total costs)
• Match the cost type with an example:

  Fixed Costs ↔️ Rent

  Variable Costs ↔️ Raw materials
• Match the financial concept with its definition:

  Total Revenue ↔️ Income generated from sales

  Break-even point ↔️ Total revenue equals total costs