Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business Studies
Lesson Topic: interpret a break-even chart
Learning Objective/s:
  • Describe fixed, variable, total cost and revenue concepts.
  • Calculate the break‑even point using the formula BEP = FC ÷ (P – VC).
  • Interpret a break‑even chart to locate the BEP, profit and loss areas, and margin of safety.
  • Analyse how changes in price, variable cost or fixed cost shift the break‑even point.
  • Apply chart interpretation to answer typical exam‑style business scenarios.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed worksheet with sample data table
  • Graph paper or digital spreadsheet for plotting
  • Calculator
  • Handout of a labelled break‑even chart diagram
 Introduction:

Begin with a quick real‑world example of a startup deciding how many units to sell to cover costs, prompting students to consider why knowing the break‑even point matters. Review prior knowledge of fixed, variable, total cost and revenue concepts. Explain that today’s success criteria are to calculate the break‑even point, correctly read a break‑even chart, and use it to make simple business decisions.
Lesson Structure:
  1. Do‑now (5') – Short recall quiz on fixed, variable, total cost and revenue.
  2. Mini‑lecture (10') – Introduce the BEP formula and demonstrate a calculation with the sample data.
  3. Guided plotting (15') – Teacher models drawing axes and plotting the fixed‑cost, total‑cost and total‑revenue lines; students replicate on graph paper.
  4. Chart interpretation activity (10') – In pairs, students identify the BEP, profit/loss regions and calculate the margin of safety while the teacher checks understanding.
  5. Application questions (10') – Students answer exam‑style scenarios (price increase, target profit, cost change) using the chart.
  6. Quick check (5') – Whole‑class poll or exit ticket summarising one insight about using the chart.
Conclusion:

Summarise how the break‑even chart visually links costs, revenue and profit, reinforcing the calculation steps. Ask students to write an exit‑ticket note describing how a change in price would shift the break‑even point. Assign homework to create a break‑even chart for a new product using a different data set.