Subjects
Maths
Chemistry
Biology
English Language
History
Responding to change (a2 only)
Infection and response
Homeostasis and response
Energy transfers (a2 only)
Cell biology
Organisms respond to changes in their internal and external environments (a-level only)
Biological molecules
Organisation
Substance exchange
Bioenergetics
Genetic information & variation
Inheritance, variation and evolution
Genetics & ecosystems (a2 only)
Ecology
Cells
Show all topics
Britain & the wider world: 1745 -1901
1l the quest for political stability: germany, 1871-1991
The cold war
Inter-war germany
Medieval period: 1066 -1509
2d religious conflict and the church in england, c1529-c1570
2o democracy and nazism: germany, 1918-1945
1f industrialisation and the people: britain, c1783-1885
1c the tudors: england, 1485-1603
2m wars and welfare: britain in transition, 1906-1957
World war two & the holocaust
2n revolution and dictatorship: russia, 1917-1953
2s the making of modern britain, 1951-2007
World war one
Britain: 1509 -1745
Show all topics
Business
15 Dec 2025
132
2 pages
Sandi ๐ป @sandi.ra
Break-even analysis is a crucial business tool that helps companies work out exactly how much they need to... Show more
Contribution is the money left over after you subtract variable costs from your selling price. Think of it as the amount each product "contributes" towards paying off fixed costs and eventually making profit.
The formula is simple Contribution per unit = Selling price - Variable cost per unit. Once you know this, you can calculate total contribution by multiplying by the number of units sold.
To find your break-even point, divide your fixed costs by the contribution per unit. For example, if your fixed costs are ยฃ15,000 and each unit contributes ยฃ7.50, you need to sell 2,000 units to break even.
The margin of safety shows how much cushion you have above break-even. If you're selling 3,000 units but only need 2,000 to break even, your margin of safety is 1,000 units - the bigger this number, the safer your business position.
Quick Tip A higher margin of safety means you're less likely to slip into making losses if sales drop unexpectedly.
Break-even analysis is incredibly useful, but it's not perfect. The model makes several assumptions that don't always reflect real business situations.
Variable costs don't actually increase at a constant rate in real life. Businesses often get bulk-buying discounts, which means costs per unit actually decrease as you buy more. The model also assumes you sell everything at one fixed price, but most businesses use different pricing strategies.
Another major limitation is that break-even analysis assumes all output is sold. During quiet periods, companies often struggle to shift all their stock, which throws off the calculations completely.
Finally, it's a static model - it only gives you a snapshot of one moment in time. Sales trends, seasonal changes, and market shifts aren't factored in, which can make your break-even calculations less reliable for long-term planning.
Remember Break-even analysis is a great starting point, but always consider these limitations when making important business decisions.
Our AI Companion is a student-focused AI tool that offers more than just answers. Built on millions of Knowunity resources, it provides relevant information, personalised study plans, quizzes, and content directly in the chat, adapting to your individual learning journey.
You can download the app from Google Play Store and Apple App Store.
That's right! Enjoy free access to study content, connect with fellow students, and get instant help โ all at your fingertips.
0
Smart Tools NEW
Transform this note into: โ 50+ Practice Questions โ Interactive Flashcards โ Full Mock Exam โ Essay Outlines
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Google Play
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because itโs too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didnโt even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as Iโm sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH ๐๐๐ฒ๐ค๐โจ๐๐ฎ
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because itโs too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didnโt even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as Iโm sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH ๐๐๐ฒ๐ค๐โจ๐๐ฎ
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
Sandi ๐ป
@sandi.ra
Break-even analysis is a crucial business tool that helps companies work out exactly how much they need to sell to cover all their costs. It's the point where a business isn't making a profit, but it's not making a loss... Show more
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Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Contribution is the money left over after you subtract variable costs from your selling price. Think of it as the amount each product "contributes" towards paying off fixed costs and eventually making profit.
The formula is simple: Contribution per unit = Selling price - Variable cost per unit. Once you know this, you can calculate total contribution by multiplying by the number of units sold.
To find your break-even point, divide your fixed costs by the contribution per unit. For example, if your fixed costs are ยฃ15,000 and each unit contributes ยฃ7.50, you need to sell 2,000 units to break even.
The margin of safety shows how much cushion you have above break-even. If you're selling 3,000 units but only need 2,000 to break even, your margin of safety is 1,000 units - the bigger this number, the safer your business position.
Quick Tip: A higher margin of safety means you're less likely to slip into making losses if sales drop unexpectedly.
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Break-even analysis is incredibly useful, but it's not perfect. The model makes several assumptions that don't always reflect real business situations.
Variable costs don't actually increase at a constant rate in real life. Businesses often get bulk-buying discounts, which means costs per unit actually decrease as you buy more. The model also assumes you sell everything at one fixed price, but most businesses use different pricing strategies.
Another major limitation is that break-even analysis assumes all output is sold. During quiet periods, companies often struggle to shift all their stock, which throws off the calculations completely.
Finally, it's a static model - it only gives you a snapshot of one moment in time. Sales trends, seasonal changes, and market shifts aren't factored in, which can make your break-even calculations less reliable for long-term planning.
Remember: Break-even analysis is a great starting point, but always consider these limitations when making important business decisions.
Our AI Companion is a student-focused AI tool that offers more than just answers. Built on millions of Knowunity resources, it provides relevant information, personalised study plans, quizzes, and content directly in the chat, adapting to your individual learning journey.
You can download the app from Google Play Store and Apple App Store.
That's right! Enjoy free access to study content, connect with fellow students, and get instant help โ all at your fingertips.
0
Smart Tools NEW
Transform this note into: โ 50+ Practice Questions โ Interactive Flashcards โ Full Mock Exam โ Essay Outlines
App Store
Google Play
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because itโs too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didnโt even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as Iโm sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH ๐๐๐ฒ๐ค๐โจ๐๐ฎ
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because itโs too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didnโt even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as Iโm sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH ๐๐๐ฒ๐ค๐โจ๐๐ฎ
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
Sociology