Lesson Plan

• Describe the break‑even point and its formula.
• Explain how changes in selling price, fixed costs, and variable cost per unit affect the break‑even quantity.
• Apply the break‑even formula to calculate new break‑even points after a change.
• Evaluate decision‑making scenarios using break‑even analysis.

• Projector or interactive whiteboard
• Printed worksheet with break‑even tables
• Calculator for each student
• Spreadsheet template (e.g., Excel) for modelling changes
• Markers and flip chart for group discussion

Begin with a quick poll: “If you could change the price of a product, what would happen to profit?” Review students’ prior knowledge of fixed and variable costs, then state that by the end of the lesson they will be able to use break‑even analysis to predict the impact of cost and price changes.

1. Do‑now (5’) – short quiz on distinguishing fixed vs variable costs.
2. Mini‑lecture (10’) – introduce the break‑even formula, contribution margin, and illustrate with the T‑shirt example.
3. Guided practice (12’) – calculate the original Q_BE and then recalculate after each change (price, fixed cost, variable cost).
4. Group activity (15’) – students use a spreadsheet to model a new scenario and interpret the new break‑even point.
5. Whole‑class discussion (8’) – answer the decision‑making checklist questions.
6. Exit ticket (5’) – each student writes one implication of a change in price, fixed cost or variable cost for a business.

Recap the key relationships between price, costs, and the break‑even quantity. Collect exit tickets to gauge understanding and assign homework: complete a worksheet that requires students to analyse a new set of cost changes and recommend a business decision.