A group report by:
Andrei Stalin P. Laxa
Joanne Mariz Dela Torre
Kervin Bryce G. Santos
A business’s break-even point is the stage at
which the revenues equal the costs.
Once you determine that number, you
should take a hard look at all your costs —
from rent to labor to materials — as well as
your pricing structure.
Variable Cost – are costs that change with changes in
the production levels or sales.
Fixed Cost – remain roughly the same regardless of
sales or output levels
OTHER TERMS
Revenue – the income that a business has from its
normal business activities
Calculating your break-even point
To calculate a break-even point, Divide fixed costs by
the revenue per unit minus the variable cost per unit.
Break-Even Point (Units) = Fixed Costs ÷ (Revenue
per Unit – Variable Cost per Unit)
Let’s say you own a business selling
burgers. It costs Php 7.00 to make
one burger and you sell each burger
for Php 12.50.
Your cost for rent, utilities, etc. is
Php 100,000 per month. What is the
breakeven point?
Luke owns a lemonade stand. It
costs him Php 1.50 to make a cup
of lemonade and sells it for Php
5.00. It costs him Php 5,000 to
rent a place for the space of his
lemonade stand. How many
cups should he sell to
breakeven?
He needs to sell 1,429 cups of
lemonade in order to break-even.
To acquire the possession of,
or the right to, by paying or
promising to pay an
equivalent, especially in
money; purchase.
A transaction between the seller
and the prospective buyer or buyers
(the target market) where money
(or something considered to have
monetary value) is exchanged for
goods or services.
In a video store, a
DVD that sells for $15
is marked, "10% off".
What is the discount?
What is the sale price
of the DVD?
The rate is usually given as a percent.
To find the discount, multiply the
rate by the original price.
To find the sale price, subtract the
discount from original price.
Now that we have a procedure, we
can solve the problem above.
Solution: The rate is 10%.
The discount is: 0.10 x $15.00 = $1.50
The sale price is calculated as follows:
$15.00 original price
1.50 discount
$13.50 sale price
Answer: The discount is $1.50 and the sale price is
$13.50.
In a department store, a
$40 dress is marked, "Save
25%." What is the
discount? What is the sale
price of the dress?
Analysis: The phrase, "Save 25%," refers to the rate.
The original price of the dress is $40.
Solution: The rate is 25%.
The discount is: 0.25 x $40.00 = $10.00
The sale price is calculated as follows:
$40.00 original price
- 10.00 - discount
$30.00 sale price
Answer: The discount is $10.00 and the sale price is
$30.00.
In a grocery store, a $12
case of soda is labeled,
"Get a 20% discount."
What is the discount?
What is the sale price of
the case of soda?
Analysis: The phrase, "Get a 20% discount," refers to
the rate.
Solution: The rate is 20%.
The discount is: 0.20 x $12.00 = $2.40
The sale price is calculated as follows:
$12.00 original price
- 2.40 - discount
$ 9.60 sale price
Answer: The discount is $2.40 and the sale price is
$9.60
In a candy store, a $5.00
jar of candy is labeled,
"50% off." What is the
discount? What is the sale
price of the jar of candy?
Analysis: The phrase, "50% off," refers to the rate.
Solution: The rate is 50%.
The discount is: 0.50 x $5.00 = $2.50
The sale price is calculated as follows:
$5.00 original price
- 2.50 - discount
$2.50 sale price
Answer: The discount is $2.50 and the sale price is
$2.50.
A pizzeria has a coupon
that reads, "Get off a
$9.00 cheese pizza." What
is the discount? What is
the sale price of the
cheese pizza?
Analysis: The phrase, "off" refers to the rate. It is
expressed as a fraction.
Solution: The rate is given as the fraction .
The discount is: x $9.00 = $3.00
The sale price is calculated as follows:
$9.00 original price
- 3.00 - discount
$6.00 sale price
Answer: The discount is $3.00 and the sale price is
$6.00.
MECHANICS: A BALL WILL BE
PASSED IN THE CLASS. ONCE
THE SONG STOPS, THE LAST
PERSON HOLDING THE BALL
WILL BE THE ONE TO ANSWER
A QUESTION.
MECHANICS: ONCE THE REPORTERS
SAY ‘MACARONI AND CHEESE’, THE
CLASS SHOULD FREEZE AND THE
PERSON WHO MOVES, LAUGHS AND
DOES SUCH MOVEMENT WILL BE THE
ONE TO ANSWER THE QUESTION.