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Amelia’s next step

Business · sample student view

Current grade

6

Target grade

7

Last practice

4/9

Focus: break-even analysis

Your recent answer missed links between costs, contribution and break-even. This question practises those links.

EXAM-STYLE PRACTICE · 6 MARKS

Explain how an increase in variable costs could affect a small bakery’s break-even point.

Business · Break-even analysis · 15 Oct

Inside the answer

4/9

Practice · checklist score

A bakery sells loaves for €3 each. Variable cost per loaf rises from €1 to €1.50 and weekly fixed costs stay at €600. Analyse the impact on break-even and recommend a response. (9 marks)

“Higher variable costs mean the bakery makes less per loaf. It will need to sell more loaves to break even. It could put up prices, but customers might buy bread elsewhere.”

A specific next step

Practise the two calculations, then add a chain of reasoning: change → effect on contribution → effect on break-even → business decision.

Example answer and feedback. Checklist points are not equally weighted marks; practice scores are guidance, not examiner grades.

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