Businesses usually need to know the minimum number of products or services they need to sell in order to earn a profit. A break-even analysis does this and more.

Course curriculum

  • 1

    Course Information & Support

    • Huricane Milton Has Canceled The Rest of Chapter 5.5. Enroll Now & Start Chapter 5.6!

    • Please Check Now That Your Phone Is In Your Bag. Please Stay For 40 Minutes Of Learning & Sign Out For The Bathrrom During The Last 5 Minutes of Class.

    • Fact Sheet Packet Of Class Policies- Please Scroll Through And Review Again

    • How Well Are You Demonstrating The IB Learner Characteristics? Which Is Your Super Power & Which Presents The Greatest Challenge?

    • Welcome IB Business Management Student

    • Chapter Work Cycle = This Is What We Are Doing In Class & For Homework Every Day

    • Finished Early? Don't Pack Up! Do This ...

    • Please Don't Disrupt Our 40 Minute Work Cycle. Leave For The Bathroom During The LAST 5 MINUTES Of Class.

    • Your Quarter Grade

  • 2

    Your Notebook Is Your Most Important Weekly Grade & Prepares You For The May Exams

    • New Textbook 5.5 Chapter = 5 Headings

    • If You Finish Early With The Outline, Create A Spider Map And/Or Start The RB

    • Read The Rules For Your Notebook Before Every Grading Day. This Paper Must Be Stapled Onto The Inside Cover Of Each Composition Notebook

    • Video: Watch A Spider Map Being Created (Best Study Tool)

    • How To Draw A Spider Map

    • LOOK: Page-By-Page Visual Instructions For Earning a 100% On Every Notebook Chapter. (NEW For 2024)

    • Video: Take A Tour Of A Business Management Composition Notebook

    • This Is How Your Notebook Pages Will Be Graded

    • Notebook Checklist & Reflection Sheet- Print, Complete, And Staple Onto The Last Page Of Your Chapter Notes BEFORE Scoring Day. It's Best To Pick Up This Blue Color Checklist In Class After We Finish The Chapter Review.

  • 3

    "RESOURCE BANK" = Topic Lessons (46) Begin Below this Point:

    • What is the Resource Bank?

    • RB = 10 Sections & 46 Posts (= 3 RB Days + HW)

    • Break-Even Is Easy, Makes Sense & Is Useful

    • What You Should be Able to Do By the End of this Chapter

  • 4

    Contribution Per Unit & Total Contribution

    • Video: Quick Overview Of How A Break-even Analysis Works (Notice The Required Data)

    • Key Terms: Unit Contribution vs. Total Contribution

    • Video: Key Term "Margin Contribution" = Unit Contribution

    • Video: Contribution Margins (i.e. Unit Contribution) Expressed As Percentages

    • Video: Planet Pizza Example Using Contribution Margin/Unit Contribution

    • Video: What Does Contribution Mean In A Break-even Analysis?

    • Video: How Are Both Types Of Contribution Calculated?

    • Video: How To Calculate Total Contribution (Quicker Than Unit Contribution In Determining Profit)

    • Video: Mr. B's Review of Contribution (start watching at 3:16)

  • 5

    What Is A Break-even Analysis?

    • Video: Introduction To The Purpose and Components Of a Break-even Analysis

    • What Is The Purpose Of A Break-Even Analysis?

    • Clarification: Contribution vs. Break-even

    • Key Terms

    • Handout: How To Start A Break Even Analysis

    • Advantages and Disadvantages Of A Break-even Analysis (You Must Say All Of This On Your IB May Exams)

    • Do You Know What "Liquidity" Means?

  • 6

    Method #1: How To Do A Break-even Analysis By Calculating Unit Contribution

    • Here Is The Unit Contribution Formula

    • Video: Farmer Joe Wants To Know How Many Apples He Needs To Sell

    • Video: How To Find The Break-even Point In Sales & Units

    • Break-even In A Restaurant

    • Visual: Break-even Formula

  • 7

    Method #2 : How To Do A Break-even Analysis By Calculating Total Revenue

    • Here Is The Total Revenue Formula

    • Video: Watch How A Break-even Analysis Is Done On a Chart Using Total Revenue and Total Costs (Q= quantity of units/products)

  • 8

    How To Show A Break-even Analysis With A Graph (Used In IA & May Exams)

    • Video: IB BM Key Term "Simple Linear Regression" = Refers To The Type Of Graph You Use In A Break-Even Chart

    • Video: How To Diagram A Break-even Chart

    • Video: How To Create A Break-even Chart

    • How To Explain Your Break-even Chart

    • Video: How To Change The Numbers in A Break-even Chart

  • 9

    Margin Of Safety

    • Video: Break-even & Margin of Safety

    • Video: The Margin of Safety

    • Video: How To Show The Margin Of Safety On A Break-even Chart

  • 10

    Target Profit, Target Price, Target Units Sold

    • Here Is The Formula To Determine How Many Products Must Be Sold To Reach a Desired Profit Amount

    • Target Profit: A Worked Out Example

    • Video: Simple Worked Example of Target Profit For A Sub Shop

    • Video: Watch This Man Figure Out How To Do A Target Profit Calculation

    • Video: A Worked Out Example Of How To Use A Target Profit To Determine Quantity Of Units That Must Be Sold To Earn That Desired Profit (Starts at 18:50)

    • Target Price Calculation

  • 11

    Key Term: Absorption Costing (Advanced HL Topic)

    • Key Term: Absorption Costing

    • How Does Absorption Costing Relate To A Break-even Analysis?

  • 12

    Benefits & Limitations Of A Break-even Analysis (You Must Say This In Your IA, EE & On The IB Exam)

    • Video: Benefits & Limitations of a Break-even Analysis

    • Handout: What Are The Strengths and Limitations of a Break-even Analysis?

    • Image: Disadvantages & Advantages of the Break-even Analysis

    • Image: Advantages, Disadvantages & Evaluation of Break-even Analysis

  • 13

    Break-even Analysis & The CCES Concepts (Creativity-Change-Ethics-Sustainability)

    • Video: Special Order Decision Making

    • Try An Activity With A Break-Even Calculator

    • Read These CCES Definitions. If You Write Them On Your May Exams You Get Credit For Clear Evidence of "Synthesis & Evaluation"

    • CCES Assignment: Write 4 CCES Impact Statements For This Chapter Following The Given Model

  • 14

    Let's Do Some Case Studies

    • Look At This Sample Of 1 Completed Case Study - Yours Must Follow The Same Format

    • Visual Of Case Study Day 1 Process

    • Instructions for Analyzing Case Studies

    • What Are Command Terms & Why Are They Important?

    • New Command Terms Definitions List (2024+) Exams = Rules for Answering Test Questions

    • Old Command Terms List = Rules for Answering Test Questions

    • Here Are Your Case Studies to Analyze

    • Show Your Teacher Your Completed Case Studies Then ...

    • Visual Of Case Study Day 2 Process (Read Your Presentation- Don't Show It- Give Command Term Definitions)

    • Finished Early? Don't Pack Up! Do This ...

  • 15

    Review Activities

    • WATCH: 5.5 Chapter Review

    • EXAM TIP!

    • Video: Summary of Break-even Analysis & The Key Terms

    • Video: Mr. B's 3.3 Review

    • Video: Mr. B's Shows How To Do A Break-even Analysis Exam Question

    • Instruction Sheet for Review Assignment

    • What Should You Do If You Get Stuck On A Question? Don't Skip It! Do This...

    • New 5.5 Review Worksheets With 4 Tasks 1-25 M/C (Title The Top Of A New Page. Then Label The Tasks And Write The Answers In Your Composition Notebook)

    • Put Away Your Pen & Pencil On Review Day- Only Have A Color Pen On Your Desk

    • Test Yourself With An IB Exam-Style Question (exam questions in BM are always multi-step, multi-answer exercises)

    • Key for the IB-Exam-Style Question (do not open until all your calculations in the table are completed)

    • 5.5 Quizlet

    • Have You Achieved the Key Learning Outcomes?

    • You Are Almost Finished!

    • Don't Forget The Last Piece!

    • Finished Early? Don't Pack Up! Do This ...

    • Memorize & Review The 5.5 Break-even Formulas For The IB Exams

  • 16

    IB DP BM May Exam Prep (Wait Until April To Do This Work)

    • Exam Practice: Break-Even

    • Exam Practice: Total Contribution & Break-Even

    • Exam Practice: Margin Of Safety & Contribution Per Unit & Break-Even

  • 17

    5.5 Quiz Scheduled

    • Come Here On Quiz Day If You Are In The Classroom - Makeups Are On The Day You Return

    • Visual: Quiz Day Schedule Of Activities