A-Level Business: Break-even and the Price Decision
Students read a break-even chart, then compare a price cut with extra advertising for the same fictional business and decide which plan to back.
A-Level-Business-Break-even-Price-Decision-Student
A-Level-Business-Break-even-Price-Decision-Teacher
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Edexcel A level Business, Theme 3: all 24 lessons for £13, about 54p a lesson. Eight original cases with learner pages, a teacher guide and full worked answers, as PDF and editable Word.
Original cases, not exam board questions. Not endorsed by any exam board.
What students do
- Calculate contribution, break-even output, profit and margin of safety for a candle business as it is today
- Read the break-even point and the profit at two levels of sales from a chart
- Complete a table for two separate plans: cut the price to £10, or keep £12 and spend £600 more a month on advertising
- Test each plan’s sales forecast, then write a recommendation of about 100 words that names one limitation of break-even analysis
What the teacher gets
- A lesson plan for about 55 minutes of tasks, with a shorter 45-minute version. Allow longer in the timetable for handing out and feedback
- Worked answers for every question, tolerances for reading the chart and a list of common errors
- Indicative guidance for the written decision. It is not an exam board mark scheme and carries no marks or grades
- Editable Word versions of both files, so you can change the business or the figures
Specification
Edexcel A level Business 9BS0, Theme 2, section 2.2.3 Break-even: contribution, break-even point, margin of safety, break-even charts and their limitations. Checked against the Pearson specification, Issue 1, September 2014. The business and every figure are fictional and the questions are original. This is not a Pearson resource, and the lesson has not yet been tested in a classroom.
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