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 Basics Of Profit Analysis: Break-Even, Contribution & More!

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

Table of content

Contribution per unit ๐ŸŒŸ

It's like getting a chocolate bar and only eating part of it - the part you've eaten is the contribution per unit!

 

๐Ÿซ Simple Explanation: If a chocolate bar (selling price) costs you $3, but you've only eaten $1 worth (variable cost), your remaining portion is $2. That's your 'contribution per unit'.

 

๐ŸŒ Real-World Example: If you sell a hand-made bracelet for $20, but the beads and thread only cost $5, your contribution per unit is $15.

Total contribution ๐ŸŒˆ

Imagine all the chocolate you ate this month. Add it up. That's your total!

 

๐Ÿซ Simple Explanation: Total revenue (all the money from selling stuff) minus all the variable costs (stuff like materials) gives the total contribution.

 

๐ŸŒ Real-World Example: If you sold 10 bracelets this month, your total contribution is $150 ($15 x 10).

Finding the profit ๐Ÿ’ฐ

Profit's like the treasure at the end of a gaming level.

 

๐ŸŽฎ Simple Explanation: To unlock this treasure, take your total contribution and deduct all fixed costs (like monthly shop rent or salaries). Another way to get it? Subtract all costs (fixed and variable) from total revenue.

 

๐ŸŒ Real-World Example: If your total contribution for bracelets was $150, but you spent $50 on a fancy jewelry-making kit (a fixed cost), then your profit is $100.

Break-even chart ๐Ÿ“Š

Imagine a see-saw. There's a point where it's perfectly balanced. That's the break-even point on a chart.

 

๐Ÿ–Œ Simple Explanation: This chart plots costs and revenues to show where they intersect. This 'meeting point' is where you've neither made a profit nor a loss.

 

๐ŸŒ Real-World Example: If you sell 50 ice creams, and only at that point you cover all your costs without any profit, then 50 is your break-even poin

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

Unit 5 - Operations management - QB

Master The Basics Of Profit Analysis: Break-Even, Contribution & More!

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

Table of content

Contribution per unit ๐ŸŒŸ

It's like getting a chocolate bar and only eating part of it - the part you've eaten is the contribution per unit!

 

๐Ÿซ Simple Explanation: If a chocolate bar (selling price) costs you $3, but you've only eaten $1 worth (variable cost), your remaining portion is $2. That's your 'contribution per unit'.

 

๐ŸŒ Real-World Example: If you sell a hand-made bracelet for $20, but the beads and thread only cost $5, your contribution per unit is $15.

Total contribution ๐ŸŒˆ

Imagine all the chocolate you ate this month. Add it up. That's your total!

 

๐Ÿซ Simple Explanation: Total revenue (all the money from selling stuff) minus all the variable costs (stuff like materials) gives the total contribution.

 

๐ŸŒ Real-World Example: If you sold 10 bracelets this month, your total contribution is $150 ($15 x 10).

Finding the profit ๐Ÿ’ฐ

Profit's like the treasure at the end of a gaming level.

 

๐ŸŽฎ Simple Explanation: To unlock this treasure, take your total contribution and deduct all fixed costs (like monthly shop rent or salaries). Another way to get it? Subtract all costs (fixed and variable) from total revenue.

 

๐ŸŒ Real-World Example: If your total contribution for bracelets was $150, but you spent $50 on a fancy jewelry-making kit (a fixed cost), then your profit is $100.

Break-even chart ๐Ÿ“Š

Imagine a see-saw. There's a point where it's perfectly balanced. That's the break-even point on a chart.

 

๐Ÿ–Œ Simple Explanation: This chart plots costs and revenues to show where they intersect. This 'meeting point' is where you've neither made a profit nor a loss.

 

๐ŸŒ Real-World Example: If you sell 50 ice creams, and only at that point you cover all your costs without any profit, then 50 is your break-even poin

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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