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Curriculum Overview KS3
Subject:
Business Studies
Overview effective from[date
]:
September 2017
Break-even
To understand
the meaning of
the term break-
even output and
interpret break-
even charts.
To be able to
identify the
break-even level
of output and
margin of safety
from a break-
even chart.
To be able to
evaluate the
value of using
break-even
analysis to a
business.
Students will not be
expected to draw
break-even charts
or use the break-
even formula.
2
Starter – students list the main objectives of a business, eg profit
maximisation, increase brand awareness, minimal environmental impact etc.
Teacher explanation of why a business reaching their break-even level is
one of the most important targets for any business.
For reference –
BBC Bitesize webpage on breaking even
Students draw a break-even chart and label the cost and revenue lines.
Students draw arrows to the relevant lines explaining why they are shaped
like they are, eg fixed cost line is horizontal as fixed costs don’t change with
output.
Teacher led explanation of the break-even point and the corresponding
profit/loss.
Students label the break-even point and shade in the profit and loss
sections on their break-even chart.
Teacher led explanation of the margin of safety.
Students label the margin of safety on their break-even chart.
Students create a table for the main benefits and drawbacks of break-even
analysis.
Recap test –
the break-even chart