Show model answer and explanation
30
80−50 = 30.
O Level · English Medium · Pearson Edexcel · Accounting
Costs, budgets and interpretation
Use costs and budgets to compare a plan with an outcome.
Shared cross-level core and stretch unit. Start with the core questions, then use the stretch example for deeper work. The same unit is available in related class and board pathways; it is not a full grade-specific or examination-specification course. A teacher should select the appropriate depth and further topics.
Learn the idea
Fixed costs stay constant over the stated activity range; variable cost changes with output. Contribution per unit is selling price minus variable cost per unit. Break-even units equal fixed cost divided by contribution, assuming constant prices and costs and that units are sold.
Worked example
Selling price 50, variable cost 30 and fixed cost 400 give contribution 20 per unit and break-even 20 units. Selling 25 units gives 25×20−400 = 100 profit under these assumptions.
- State the range and assumptions.
- Calculate contribution and total cost.
- Compare the plan with alternatives or actual results.
Stretch example
A limiting resource changes the comparison: contribution per machine hour equals unit contribution divided by hours per unit. The most profitable use depends on demand and other constraints as well.
Your written practice
Show your working on paper and enter your answer here. If it does not match, compare the model and try again.
Show model answer and explanation
30
900/30 = 30.
Show model answer and explanation
150
1150−1000 = 150.
Write in your own words. A guardian or teacher should review this response.
Show model answer and explanation
Prices, capacity and costs may change, so constant-rate assumptions stop holding.
Name an assumption that could change.
Write in your own words. A guardian or teacher should review this response.
Show model answer and explanation
It could reflect less output or lower quality rather than efficiency.
Compare like activity and outcomes.
Show model answer and explanation
20
60/3 = 20.
Write in your own words. A guardian or teacher should review this response.
Show model answer and explanation
Unsold output does not earn the planned contribution; sales demand can constrain the solution.
Include a practical constraint.
Budget case
Build a fictional event budget with two sales volumes.
Review with a guardian or teacher
- Separate fixed and variable costs.
- Show the break-even assumption.
- Explain one risk beyond the arithmetic.
Keep your work on paper or in a local file. This page does not upload it or automatically grade the project.
Teacher-led lessons, schedules and prices for this outline are upcoming. You can use any starter practice above now without booking.
Your next step
Solo practice works without an account. Sign in to save a practice record to your learner profile.
Keep practising
Exact lesson links and related activities are labelled separately. Return-to-course links retain your selected learning path.