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ENTREPRENEURSHIP-CLASS XI

CODE-HA 241506010124

TOPIC-BUSINESS FINANCE AND ARITHMETIC

SUB TOPIC- BREAK-EVEN ANALYSIS AND TAXES
Sl.No Questions Marks
1. What do you understand by ‘break-even point’? 1

2. A business’s break-even point is the amount or level of …….. that 1
it must generate in order to equal its ………. .

3. At the break-even level, ……. Is equal to the total expenses. 1

4. Give the formula for computing break-even volume. 1

5. Break-even volume per month is equal to ……………./ …………. . 1

6. Explain ‘income tax’ and ‘corporation tax’ as examples of direct 2
taxes.

7. Explain ‘customs duty’ and ‘central excise duty’ as examples of 2
indirect taxes.

8. Give one difference between direct tax and indirect tax. 3

9. Why does the government need taxes? 3

10. What do you mean by break-even point? 4

11 The following information relates to a company, which produces 6
a single product.
Direct labour per unit Rs. 22

Direct materials per unit Rs. 12

Variable overheads per unit Rs.6

Fixed costs Rs.4,00,000

Selling price per unit Rs.60

Use the figures above to show that minimum number of units that
must be sold for the company to break-even.