Bece Model Questions Vol1 2020 Business Studies Question 1

Practice practical question 1 from the 2020 Bece Model Questions Vol1 Business Studies examination. This question covers Introduction to Business, Cost concepts, Break‑even analysis .

Bece Model Questions Vol1 2020 Business Studies Practical
Topics: Introduction to Business Cost concepts Break‑even analysis
Question 1 BECE_MODEL_QUESTIONS_VOL1 • 2020 • BUSINESS_STUDIES • practical

A student plans to start a small bakery that sells cupcakes. The following information is available: - Fixed costs (rent, utilities, salaries) per month: ₦120,000 - Variable cost per cupcake (ingredients, packaging): ₦250 - Expected selling price per cupcake: ₦500 - The student expects to sell at least 600 cupcakes in the first month. Using this information, answer the tasks below.

Question Parts

( a )
Calculate the break‑even point in units (number of cupcakes).
( b )
State the break‑even revenue (in ₦).
( c )
Identify which of the three cost categories (fixed, variable, total) is most controllable in the short run and justify your answer.
( d )
Suggest two practical ways the student could lower the break‑even point and briefly explain how each would affect the calculation.

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About This Question

This is Bece Model Questions Vol1 2020 Business Studies Question 1. It is one of the practical questions from the 2020 Bece Model Questions Vol1 Business Studies examination.

The question covers Introduction to Business, Cost concepts, Break‑even analysis .

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