Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: the uses and limitations of break-even analysis
Learning Objective/s:
  • Describe the purpose and key formulae of break‑even analysis.
  • Explain how break‑even analysis can be used for pricing, sales targets and cost‑change evaluation.
  • Evaluate the main assumptions and limitations of break‑even analysis in business decision‑making.
  • Apply the break‑even formula to calculate the break‑even quantity for a given cost structure.
  • Interpret break‑even results to support strategic choices such as make‑or‑buy or capacity planning.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck summarising formulas and examples
  • Printed worksheet with cost data and calculation space
  • Calculator or spreadsheet software (e.g., Excel)
  • Break‑even chart handout
  • Markers and whiteboard
 Introduction:
Begin with a quick poll: how many students have set a sales target for a school fundraiser? Review that revenue equals price times quantity and that costs include fixed and variable components. Explain that today’s success criteria are to calculate a break‑even point and critique its usefulness for business decisions.
Lesson Structure:
  1. Do‑now (5'): Students complete a short quiz on fixed vs variable costs. (Check understanding)
  2. Mini‑lecture (10'): Present break‑even concept, formula, and diagram using slides. (Explain)
  3. Guided practice (15'): Work through the illustrative example together, filling calculations on the worksheet. (Apply)
  4. Group activity (15'): Teams analyse a new product scenario, compute break‑even quantity, and discuss assumptions. (Evaluate)
  5. Whole‑class debrief (10'): Groups share findings; teacher highlights uses and limitations. (Synthesize)
  6. Exit ticket (5'): Students write one practical use and one limitation of break‑even analysis. (Reflect)
Conclusion:
Summarise that break‑even analysis shows the sales level needed to avoid losses but rests on simplifying assumptions. Collect exit tickets and remind students that the next lesson will integrate break‑even results with cash‑flow forecasting. Assign homework to complete a spreadsheet break‑even model for a chosen product.