Business Management SL
Business Management SL
6
Chapters
175
Notes
Unit 1 - Introduction To Business Management - QB
Unit 1 - Introduction To Business Management - QB
Unit 2 - Human Resource Management - QB
Unit 2 - Human Resource Management - QB
Unit 3 - Finance & accounts - QB
Unit 3 - Finance & accounts - QB
Unit 4 - Marketing - QB
Unit 4 - Marketing - QB
Unit 5 - Operations management - QB
Unit 5 - Operations management - QB
Understanding Operations: The Core Of Every Organization
Unlock The Power Of Business Operations: The Key To Profit & Success
Unveiling The Mystery How Operations Drive Both Goods And Services Production
Mastering The Triple Bottom Line: Operations Management Meets Sustainability
Discover Casa Blanca Eco-Lodge: Belize's Hidden Gem of Sustainability
Unlock The Secrets To High-End Customized Job Production
Unlock The Power Of Batch Production: Quality Meets Affordability
Unlock The Secrets Of Mass Production: Pros, Cons & Alternatives
Revamp Your Business: The Costs & Rewards of Changing Production Methods
Choosing The Best Production Method One-Size Doesn't Fit All
Unlock The Secret Behind ABC's Chocolate Production: Mass vs Batch
Essential Guide to Business Relocation & Startup
Unleashing Globalization's Impact on Business Location Decisions
Unlock Competitive Advantage with Outsourcing & Offshoring
Revise Business Strategies: Outsourcing, Offshoring, and More!
Maximize Profits With The Contribution Method!
Unlock The Secret To Profit: Master Your Break-Even Point & Margin Of Safety
Unlock The Secret To Break-Even Revenue: Master Figure 5.5.3 & Formulas
Master The Break-Even Chart How Price & Cost Changes Affect Your Profit
Unlock The Power & Pitfalls Of Break-Even Analysis For Business Success
Master The Basics Of Profit Analysis: Break-Even, Contribution & More!
Master Dan Electro's Business Case: Your Ultimate Guide To Tablet Sales Success
Master Crisis Management: Steps to Protect Your Organization Now!
Master Contingency Planning: Stay Prepared For Crisis Scenarios
Crisis Vs Contingency Planning: The Case Of Lloyds Charity's Ransomware Attack
Unlocking Business Potential: Dive Into Information Systems & Data Analytics
Unlocking Business Success: Data Analytics & Data Mining Explained
Unlock E-Commerce Success With Advanced Computer Technologies
Unlock The Power Of ANN And Cloud Computing In Critical Infrastructures
Unlock The Future: Big Data Vs. Virtual Reality Vs. IoT Vs. Artificial Intelligence Explained
Digital Taylorism: Is Tech Boosting Efficiency or Killing Humanity?
Unit 6 - Assessment
Unit 6 - Assessment
IB Resources
Unit 5 - Operations management - QB
Business Management SL
Business Management SL

Unit 5 - Operations management - QB

Master The Break-Even Chart How Price & Cost Changes Affect Your Profit

Word Count Emoji
668 words
Reading Time Emoji
4 mins read
Updated at Emoji
Last edited on 5th Nov 2024

Table of content

Hey there! ๐Ÿ‘‹ Get ready to dive into the fascinating world of break-even analysis. Let's break down the impact of price or cost changes on break-even quantity, profit, and margin of safety. We're going to make this as simple and fun as possible! ๐ŸŽ‰

Break - even Chart

This chart helps a business understand how many units they need to sell to cover their costs. It's a great decision-making tool, and we're going to explore what happens when we change prices or costs.

Changes in price ๐Ÿ†™

  • Effect: If a company increases the price of its product, the total revenue line on the break-even chart shifts up (from TR1 to TR2). This means the company will earn more money for every unit sold.
  • Result: The firm will reach its break-even point at a lower level of output. Profit will be higher at every output level, and the margin of safety increases. ๐Ÿš€
  • Real-World Example: Apple increases the price of its iPhone by $100. As a result, Apple makes more money per iPhone sold, reaches its break-even point faster, and enjoys higher profits!

Unlock the Full Content! File Is Locked Emoji

Dive deeper and gain exclusive access to premium files of Business Management SL. Subscribe now and get closer to that 45 ๐ŸŒŸ

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IB Resources
Unit 5 - Operations management - QB
Business Management SL
Business Management SL

Unit 5 - Operations management - QB

Master The Break-Even Chart How Price & Cost Changes Affect Your Profit

Word Count Emoji
668 words
Reading Time Emoji
4 mins read
Updated at Emoji
Last edited on 5th Nov 2024

Table of content

Hey there! ๐Ÿ‘‹ Get ready to dive into the fascinating world of break-even analysis. Let's break down the impact of price or cost changes on break-even quantity, profit, and margin of safety. We're going to make this as simple and fun as possible! ๐ŸŽ‰

Break - even Chart

This chart helps a business understand how many units they need to sell to cover their costs. It's a great decision-making tool, and we're going to explore what happens when we change prices or costs.

Changes in price ๐Ÿ†™

  • Effect: If a company increases the price of its product, the total revenue line on the break-even chart shifts up (from TR1 to TR2). This means the company will earn more money for every unit sold.
  • Result: The firm will reach its break-even point at a lower level of output. Profit will be higher at every output level, and the margin of safety increases. ๐Ÿš€
  • Real-World Example: Apple increases the price of its iPhone by $100. As a result, Apple makes more money per iPhone sold, reaches its break-even point faster, and enjoys higher profits!

Unlock the Full Content! File Is Locked Emoji

Dive deeper and gain exclusive access to premium files of Business Management SL. Subscribe now and get closer to that 45 ๐ŸŒŸ

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