Lesson Plan

• Describe fixed costs, variable costs and contribution margin.
• Calculate the break‑even point in units and in sales value using the appropriate formulas.
• Interpret break‑even results to inform pricing and short‑term planning decisions.
• Evaluate at least two advantages and two limitations of break‑even analysis.

• Projector and screen
• Whiteboard and markers
• Calculators (one per pair)
• Worksheet with the XYZ Ltd example and practice questions
• Printed break‑even chart handout
• Exit‑ticket slips

Show a short video of a start‑up struggling to cover its costs to hook interest. Review students’ prior knowledge of revenue, costs and profit. Explain that by the end of the lesson they will be able to calculate and interpret the break‑even point, which will be the success criteria for today.

1. Do‑now (5'): Quick quiz on identifying fixed vs. variable costs.
2. Mini‑lecture (10'): Introduce key concepts (FC, VC, SP, CM, CMR) and formulas using the projector.
3. Guided practice (15'): Work through the XYZ Ltd example together, calculating CM, CMR, BEP units and BEP sales.
4. Independent practice (15'): Pairs solve the bakery practice question and record answers.
5. Class discussion (10'): Discuss advantages, limitations and real‑world applications of break‑even analysis.
6. Exit ticket (5'): Each student writes one business situation where knowing the BEP would be useful.

Recap the steps for calculating the break‑even point and highlight how the results guide pricing decisions. Collect exit tickets to check understanding and assign a homework worksheet with additional break‑even problems for reinforcement.