Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: the meaning and importance of break-even analysis
Learning Objective/s:
  • Describe what break‑even analysis is and identify its key components (fixed costs, variable costs, contribution margin).
  • Calculate the break‑even point in units and in sales value using given data.
  • Analyse how break‑even information supports pricing, product launch and budgeting decisions.
  • Evaluate the limitations of break‑even analysis in real‑world contexts.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck on break‑even concepts
  • Calculator or spreadsheet software (e.g., Excel)
  • Printed worksheet with data for a worked example
  • Graph paper or digital tool for drawing a break‑even chart
  • Markers and whiteboard
 Introduction:
Begin with a quick poll: how many students have heard the term “break‑even” in a business context. Recall that profit occurs when revenue exceeds costs and ask students to consider what point revenue equals total costs. Explain that today’s success criteria are to define break‑even analysis, compute the break‑even point, and discuss its relevance for business decisions.
Lesson Structure:
  1. Do‑Now (5') – Students write on sticky notes the difference between profit and loss.
  2. Mini‑lecture (10') – Define break‑even analysis, fixed/variable costs, contribution margin; present formulas.
  3. Guided calculation (12') – Work through the provided example, students compute CM, BEP (units) and BEP (value) using calculators.
  4. Break‑even chart activity (10') – In pairs, plot fixed cost, total cost and revenue lines on graph paper or in Excel.
  5. Application discussion (8') – Groups discuss how the BEP informs pricing, product launch and budgeting; share insights.
  6. Limitations critique (5') – Whole‑class brainstorm of assumptions and limitations of the analysis.
  7. Check for understanding (5') – Exit ticket: one sentence stating why break‑even analysis is important and one key limitation.
Conclusion:
Recap that break‑even analysis identifies the sales level needed to cover costs and guides key business decisions, while noting its simplifying assumptions. Collect exit tickets to capture each student’s most important insight and a limitation they identified. For homework, ask students to choose a real product, gather approximate cost data, and estimate its break‑even point using the formulas learned.