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Break-even analysis
Practice Questions

20 CIE IGCSE Business Studies questions on Break-even analysis, each with instant feedback and a full examiner-style mark scheme.

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✨ Revision guide includes key terms, worked examples and exam technique for Break-even analysis.

Try 2 sample questions on Break-even analysis

Question 1 · 1 mark · Difficulty 2/3

A business has fixed costs of $10,000, a selling price of $25 per unit, and variable costs of $15 per unit. What is the break-even output?

  1. 1,000 units
  2. 2,500 units
  3. 667 units
  4. 400 units
Show answer & explanation
✓ Answer: A — 1,000 units
Break-even output = Fixed costs ÷ Contribution per unit. Contribution per unit = $25 − $15 = $10. Break-even = $10,000 ÷ $10 = 1,000 units. Option A incorrectly divides fixed costs by selling price alone. Option B divides fixed costs by variable costs. Option D divides total costs by contribution.
Question 2 · 1 mark · Difficulty 2/3

On a break-even chart, the area between the total revenue line and the total costs line to the RIGHT of the break-even point represents:

  1. The fixed cost area
  2. The profit area
  3. The loss area
  4. The margin of safety
Show answer & explanation
✓ Answer: B — The profit area
To the right of the break-even point, total revenue exceeds total costs, meaning the business is making a profit — this gap represents the profit area. The loss area is to the left of break-even where costs exceed revenue. The margin of safety is the difference between actual/budgeted output and break-even output, not an area on the chart. The fixed cost area is a separate horizontal band at the bottom of the chart.
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CIE IGCSE Business Studies: Break-even analysis FAQ

How many CIE IGCSE Business Studies questions on Break-even analysis are there on Kramizo?
Kramizo currently has 20 exam-board-aligned practice questions on Break-even analysis for CIE IGCSE Business Studies, with new questions added every week. Each question gives you instant feedback and a full examiner-style mark scheme that tells you exactly what would earn marks on a real CIE paper. The questions span the full difficulty range — from straightforward recall (level 1) right up to multi-step reasoning and evaluation (level 3) — so the bank works for first-pass revision and final exam-week stress testing alike.
Is Kramizo free for CIE IGCSE students preparing for Business Studies?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix Break-even analysis practice with other Business Studies topics or even switch to a totally different CIE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the Break-even analysis questions aligned to the official CIE IGCSE Business Studies syllabus?
Every question is written against the published CIE IGCSE Business Studies specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CIE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CIE.
How is Break-even analysis typically tested on CIE IGCSE Business Studies papers?
Break-even analysis appears across multiple question types on real CIE IGCSE Business Studies papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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