Lesson 6.2.3

6.2.3 Break-Even Chart Quiz: NCFE Business & Enterprise, Unit 6

20 questions · by Revision Ninja

In partnership with Revision Ninja

This free Break-Even Chart quiz has 20 multiple choice questions for the NCFE Level 1/2 Technical Award in Business and Enterprise (NCFE Business & Enterprise), Unit 6: Finance. It covers lesson 6.2.3, Break-Even Chart, one of the ready-made revision sets written with Revision Ninja and organised by unit on Qwiz Rush.

Use it as a starter, a plenary or an end-of-unit check: host it live on the board and students join with a game code on their own devices — no student accounts and nothing to install — or set it for independent revision with Free Play, where each student works through the questions alone.

Every question runs on a 20-second countdown and the fastest correct answers score the most. All the questions and their choices are listed below so you can see what the quiz covers; the answers are revealed in the game. Want to change something? Make your own copy and edit it in your library.

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The 20 questions

  1. A business has reached its break-even point. What must be true of its finances?

    • Total costs equal total revenue
    • Revenue is greater than total costs
    • Total costs are greater than revenue
    • Fixed costs equal variable costs

  2. Which of these best describes revenue for a business?

    • The money it receives from selling its output
    • The money left once costs are taken away
    • The money owners put in to start it up
    • The money it pays out to suppliers and staff

  3. Which of these is the correct meaning of profit?

    • The selling price multiplied by units sold
    • The money paid out to run the business
    • The cash a business has left in the bank
    • Revenue left after all costs are paid

  4. A business makes a loss in a trading year. Which statement explains why?

    • Its variable costs rose faster than its selling price
    • It sold fewer units than the year before
    • Its total costs are greater than its revenue
    • Its revenue is greater than its total costs

  5. What does a firm's margin of safety tell it?

    • How many units it must sell to break even
    • How quickly its profits will pay off its fixed costs
    • How much each unit earns after its variable costs
    • How far sales can fall before it breaks even

  6. A firm breaks even at 400 units and actually sells 650 units. What is its margin of safety?

    • 650 units
    • 250 units
    • 1,050 units
    • 400 units

  7. On a break-even chart, how do you find the break-even point?

    • Where the revenue line starts from the origin
    • Where the total revenue line crosses the cost line
    • Where the gap between revenue and cost is widest
    • Where the total cost line meets the vertical axis

  8. How is the break-even level of output calculated?

    • Fixed costs divided by the contribution per unit
    • Fixed costs divided by the selling price per unit
    • Variable costs divided by the contribution per unit
    • Total costs divided by the number of units sold

  9. A café's landlord puts up the rent. Its prices and variable costs stay the same. What happens to break-even output?

    • It rises, as more units are needed to cover the rent
    • It falls, as each unit now earns more contribution
    • It stays the same, as rent is not a variable cost
    • It stays the same, as revenue per unit is unchanged

  10. A firm sells 300 hoodies at £20 each. Its total costs for the period are £4,800. What profit does it make?

    • £4,800
    • £1,200
    • £6,000
    • £10,800

  11. A break-even chart plots lines showing the link between which three things?

    • Market share, price and profit
    • Costs, revenue and output level
    • Cash inflows, outflows and balance
    • Assets, liabilities and share capital

  12. Which line on a break-even chart is drawn flat, staying level as output rises?

    • The total cost line
    • The variable cost line
    • The sales revenue line
    • The fixed cost line

  13. Which set of figures does a business need before it can draw a break-even chart?

    • Market share and rivals' prices
    • Total assets and total liabilities
    • Corporation tax rate and dividends paid
    • Fixed costs, variable cost and price

  14. The break-even point is the level of output at which which of these is true?

    • Profit reaches its highest level
    • Variable costs equal fixed costs
    • Total revenue equals fixed costs
    • Total revenue equals total costs

  15. Ravi's bakery is selling fewer units than its break-even output. What does that tell us?

    • It has a wide margin of safety
    • It is trading at a loss
    • It has run out of cash
    • It is making a profit

  16. A firm wants a wider margin of safety at its current level of sales. Which action would do that?

    • Cut the variable cost per unit
    • Raise output to build up stock
    • Take on more salaried managers
    • Cut the selling price per unit

  17. Which of these is a genuine limitation of break-even analysis?

    • It gives no figure for total revenue
    • It cannot be used by a new start-up
    • It requires a full set of accounts
    • It assumes every unit made is sold

  18. A firm breaks even at 1,000 units and currently sells 1,500 units. What is its margin of safety?

    • 1,000 units
    • 1,500 units
    • 2,500 units
    • 500 units

  19. Which decision is a break-even chart most likely to help an owner make?

    • How much cash will be in the bank
    • How much corporation tax to pay
    • What price to charge per unit
    • Whether its market share is rising

  20. A firm's landlord puts up the rent. How does that show on its break-even chart?

    • The total cost line becomes steeper
    • The break-even point moves left
    • The revenue line becomes steeper
    • The fixed cost line shifts upwards