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Flip to reveal answersProfit zone on a break-even chart = area where ___
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All 25 Flashcards — Break-even charts
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Question
Profit zone on a break-even chart = area where ___
Answer
TR is ABOVE TC — to the right of BEP.
💡 Hint
TR above TC
Question
Break-even chart shows TC and TR at different ___
Answer
Output levels — visual way to see BEP, profit/loss zones and margin of safety.
💡 Hint
Output levels
Question
Break-even chart questions are typically worth ___ marks
Answer
4 marks: labelled axes (1), correct TR (1), correct TC (1), BEP identified (1).
💡 Hint
4 marks
Question
Step 1 of drawing a break-even chart?
Answer
Draw and label axes — x-axis = output (units), y-axis = costs/revenue ($).
💡 Hint
Label axes
Question
What is a break-even chart?
Answer
A graph showing TC and TR at different output levels — BEP is where the lines cross.
💡 Hint
TC + TR graph
Question
TC line starts at ___ and slopes ___
Answer
Fixed costs level (not zero); upward — because VC adds to FC as output increases.
💡 Hint
FC level + upward
Question
Why draw a break-even chart?
Answer
Visual way to see profit/loss zones, margin of safety, and impact of cost/price changes.
💡 Hint
Visual planning tool
Question
Loss zone on a break-even chart = area where ___
Answer
TC is ABOVE TR — to the left of BEP.
💡 Hint
TC above TR
Question
If question says 'to scale' but you don't draw to scale, max = ___
Answer
Usually 2 out of 4 — scale matters for accuracy marks.
💡 Hint
2 out of 4
Question
TC starts at ___; TR starts at ___
Answer
TC at fixed costs level; TR at the origin.
💡 Hint
FC level; origin
Question
On a break-even chart, x-axis = ___; y-axis = ___
Answer
X = output (units); Y = costs/revenue ($).
💡 Hint
Units; $
Question
Use a ___ for neat, accurate lines
Answer
Ruler — makes it easier for the examiner to award marks.
💡 Hint
Ruler
Question
To find profit at any output from the chart:
Answer
Read TR and TC at that point, then profit = TR − TC.
💡 Hint
TR minus TC at that point
Question
TR line starts at ___ and slopes ___
Answer
Origin (0,0); upward — zero sales = zero revenue.
💡 Hint
Origin + upward
Question
Always label axes, lines and ___
Answer
BEP — four marks typically available for a well-drawn chart.
💡 Hint
BEP
Question
Common chart mistakes that lose marks?
Answer
Forgetting to label axes, not starting TC at FC level, not drawing to scale.
💡 Hint
Labels + TC start + scale
Question
Draw to scale if asked — otherwise max ___
Answer
2 marks out of 4.
💡 Hint
2/4
Question
BEP on the chart is where ___
Answer
TC and TR lines cross — read down to x-axis for break-even output.
💡 Hint
Lines cross
Question
Break-even output: read ___ from BEP to the ___
Answer
Down; x-axis — gives the number of units.
💡 Hint
Down to x-axis
Question
Four things to always label on a break-even chart?
Answer
Axes, TR line, TC line, BEP.
💡 Hint
Axes + TR + TC + BEP
Question
Quick: BEP = where ___ and ___ lines cross
Answer
TC and TR.
💡 Hint
TC + TR
Question
Quick: Profit zone = right of BEP. Loss zone = ___
Answer
Left of BEP.
💡 Hint
Left
Question
Break-even chart shows margin of safety as ___
Answer
Distance along x-axis between BEP and actual output.
💡 Hint
Gap on x-axis
Question
After drawing TC and TR, mark the ___ where they cross
Answer
Break-even point — and label it clearly.
💡 Hint
BEP
Question
Margin of safety on chart = distance between ___ and ___
Answer
BEP and actual output on the x-axis.
💡 Hint
BEP to actual
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Full study notes for Break-even charts
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Break-even analysis
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