Nearpod version available
Grade 9-12
,
Lesson
Break-Even Analysis
Objective
Students will be able to:
- Identify and explain the difference between variable costs and fixed costs.
- Define total cost and total revenue.
- Analyze business costs and revenues to determine the number of units that must be sold to cover all operating costs.
Standard
National Standards in Economics
Entrepreneurship
Standard: 14
- Students will understand that: Entrepreneurs take on the calculated risk of starting new businesses, either by embarking on new ventures similar to existing ones or by introducing new innovations. Entrepreneurial innovation is an important source of economic growth.
- Students will be able to use this knowledge to: Identify the risks and potential returns to entrepreneurship, as well as the skills necessary to engage in it. Understand the importance of entrepreneurship and innovation to economic growth, and how public policies affect incentives for and, consequently, the success of entrepreneurship in the United States.
Concepts
In this personal finance lesson, students will use breakeven analysis formula to analyze investment options.
Resources
Procedure
Click NEARPOD VERSION: BREAK-EVEN ANALYSIS to access an interactive version of the lesson powered by Nearpod: students interact and respond to questions on their device, and teachers will see their responses in real time!