Break Even – Fixed and Variable Expenses

Overview:

If done as an isolated lesson, students are introduced to the idea of break even, revenues and expenses (both fixed and variable). The lesson begins with a whole group discussion of these topics, applied to different business scenarios. (If this lesson is done in sequence with the first break-even lesson – fixed expenses only – this can be a short review.) Students can share their answers from the previous lesson. Students are asked to think about their relationship between fixed and variable expenses. In small groups, students work through calculating break-even points for businesses with fixed and variable expenses. Finally, students report on their findings and discuss the importance of calculating break-even point and further discuss the relationship between the two.

Lesson Plan Details:

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