10 B Break Even Song November 2011 - tutor2u

10 B Break Even Song November 2011 - tutor2u

Mr Pryers Year 10 Classes Break Even Song November 2011 Collated Best Version Heres a song to help our learning, About what a business should be earning, To cover all that is has been spending,

On it our exam grade is depending, Look for where TR intersects with TC And that is where the break even point will be Aim for this to keep your business on track Not make a loss, givin people the sack, yeah

Chorus So what Ive been asked to do Is work out what we need in revenue To stop us from making a loss Because when we do it upsets the boss Im planning our business Im planning our business

Fixed costs divided by contribution per unit, well that is the solution To figure out the units youre needin To make and sell ensuring you break even, even.

Chorus So what Ive been asked to do Is work out what we need in revenue To stop us from making a loss Because when we do it upsets the boss Im planning our business Im planning our business

Im planning our busineeeeeeeeeeeessssssssss Im planning our business To work out exactly what the contribution is Take variable cost per unit in running your biz From the selling price you charge for your wares It goes towards covering your fixed costs..

If you have been making a loss lately Its time to talk about the margin of safety Current output minus breakeven Make it positive and losses youll be leavin leavin Chorus

So what Ive been asked to do Is work out what we need in revenue To stop us from making a loss Because when we do it upsets the boss Im planning our business Im planning our business Im planning our busssssssssssssssiiiiinessssss

Im planning our business.. Want to break even, oh-oh Want to break even, oh-oh Want to break even MUSIC FADES OUT!

Bonus/Alternative Verses on Value of Break Even as a tool Now the break-even tool it has the bonus Of providing a target for business owners Its simple to use and really concise Can model changes like raising your price

Not losing money anymore Making a profit is what Im looking for Sales - they are always on our mind how many customers we must find, find. Bonus Verses on Limitation of Break Even The break-even tool well it could be bad though

Assumes things happen that may not work out, no Only as good as research quality Forgets what will happen in reality Now Break Even comes with certain problems Its based on taking some assumptions

Like that youll sell all that you are making And lets be honest that is just faking

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