Business Management HL
Business Management HL
6
Chapters
223
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
Unlock Efficiency: Master Lean Production Today!
Unlock Efficiency: Lean Production Methods Revealed!
Unlock The Future: Cradle-To-Cradle Design & Manufacturing
Unlock Success With Quality Assurance Revolution!
Unlock Success With Quality Management: Kaizen, Circles, Benchmarking
Unlock Global Success with ISO & EU Quality Standards (HL)
Unlock Efficiency: Your Guide To Lean Production & Quality Management
Elevate Your Knowledge: AMM's Strategic Options Unveiled
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
Unlock The Secrets Of An Efficient Supply Chain Go From Local To Global
Master JIT Vs JIC The Ultimate Guide To Lean Stock Control
Maximize Profits With The Ultimate Guide To Capacity Utilization Rate
Mastering Defect & Productivity Rates Boost Your Business Efficiency Now!
Unlock High Labour & Capital Productivity Tips & Formulas Revealed
Unlock The Power Of Operating Leverage For Max Profits
Buy Vs. Make Unlock The Secret Cost Formulas For Smart Business Decisions
Unlock The Secret To Optimal Stock Management A Case Study On Gisela Fair Coffee
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
Unlock Business Growth: Why R&D Is Your Secret Weapon
Unlock Innovation: How To Meet Customers' Unmet Needs & Drive Growth
Unlocking The Power Of Intellectual Property Rights In Marketing & R&D
Unlock Business Success: Mastering Product & Process Innovation
Unlocking The Secrets Of Pharma R&D Adaptive Vs Disruptive Innovation
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 HL
Business Management HL

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! πŸ‘‹ 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! πŸŽ‰

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 πŸ†™

  • 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. πŸš€
  • 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 HL. Subscribe now and get closer to that 45 🌟

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

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! πŸ‘‹ 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! πŸŽ‰

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 πŸ†™

  • 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. πŸš€
  • 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 HL. Subscribe now and get closer to that 45 🌟

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