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Ask learners to consider the limitations or disadvantages of working out a business’ break-even point. They could carry out research and then list the limitations on a poster or give a presentation on it. Such limitations include the following.
• All answers including sales are shown in a straight line but this is not the case in real life.
• It is just a snapshot.
• Fixed costs do not always remain the same as sales go up, especially if the organisation needs to use more space in another location or for storage, etc.
• It is only really useful for one product or service, and most companies have more than one. This means it would need adapting for each product or service, which would be difficult and laborious to do.
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