METHODOLOGICAL DESIGN FOR LEARNING ADAPTED TO VIRTUALITY OF BUSINESS

MANAGEMENT SL – 5TH
PEDAGOGICAL UNIT N° I
MDFL N° 01: The written commentary
1. WE GET IN TOUCH AND TAKE ON CHALLENGES
¡Hello!
Welcome dear students.

Thank you for joining to this class in a virtual or WhatsApp mode. I hope you enjoy the Business
Management subject, and I will be available for all your comments or doubts.

Activity 1: Read and answer the question. (4 minutes.)

¿Why is important to know the assessment criteria of the Written

Commentary?

OVERVIEW:
 Students read the information about Written Commentary requirements in Activity 2. (31 min) 
 Students practice with a Written Commentary Sample and fill in the chart in Activity 3. (45 min)
 Students assess their own Written Commentary with the Marking Criteria in Activity 4. (45 min)
 Students reflect on about their new learnings and applications in Activity 6. (40 min)
LEARNING PURPOSE:
Internal Assessment

 Auto evaluate their first draft of their written commentary with some assessment criteria to have
the highest score in the task.
 Justify their work by presenting 3 to 5 supporting documents already highlighted to evidence
strong cohesion of the work.
EVIDENCE
 Present a first draft of their written commentary with some of the assessment criteria already
checked.

IMPORTANT!

The meet, the board in the classroom, the cell phone and instant messaging will be active at all times
to answer questions or queries.

2. WE INVESTIGATE AND BUILD LEARNINGS

1. Why is it so important to develop the research question in the

written commentary?
2. Would a good argument be valid, without supporting
documents? why?
Activity 02: Look at the following information and keep in mind (31 minutes.)
Activity 03: Read the following Written Commentary and score using the Standard Level Marking
Criteria Table. (45 min.)
WRITTEN COMMENTARY EXAMPLE
SUPPORTING DOCUMENTS
 Now, assess this Internal Assessment with the Standard Level Marking Criteria Table.

Criteria Marks awarded Marks available Comments

A 4

B 5

C 5

D 3

E 4

F 2

G 2

Total 25

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Activity 04: Now, the teacher gives a modeling analysis: (45 minutes.)

WE CONCLUDE:

Teacher’s duties:

 Check student’s works given in the previous task and have a feedback.
 Contrast student’s opinions with the opening question. Students build a
new knowledge.
 Clarify the forecasted evidence and answer student’s doubts.

3. WE TRANSFER AND SELFASSESS

Activity 05: Now, only complete the blanks with the criterions done so far of your Written Commentary.
Attach your written commentary and supporting documents. (40 min.)

Criteria Marks awarded Marks available Comments

A 4

B 5

C 5

D 3

E 4

F 2

G 2

Total 25

4. WE REFLECT ON OUR RESULTS

Activity 06: Now reflect about your new learnings and applications. (15 minutes)

Student’s duties:

 Contrast their results with teacher’s help.

 Interchange classmate’s points of view.
 Develop a metacognitive process.

1. What do you remember about the written commentary?

2. How did you feel working with the activities?
3. Which part were you best?

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BIBLIOGRAPHY AND RESOURCES

BIBLIOGRAPHY
‐ Organización del Bachillerato Internacional (2014). Guía de Gestión Empresarial. Primera evaluación
2016. Cardiff: IBO
‐ Hoang, P. (2013). Business Management (3rd ed.). Melton: IBID Press.
‐ Lominé, L., Muchena, M. & Pierce, R. (2014). Business Management: Course companion. Oxford: Oxford
University Press.
‐ Stimpson, P. & Smith, A. (2015). Business Management for the IB Diploma (2nd ed.). Cambridge:
Cambridge University Press.
‐ Stimpson, P. & Smith, A. (2011). Business and Management for the IB Diploma. Cambridge: Cambridge
University Press.

AUTHORSHIP
Alfonso Esteban Urteaga Gago (2020). Methodological Design for Learning Adapted to Virtuality: “The
Written Commentary” – Unit 1, Session N° 01

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METHODOLOGICAL DESIGN FOR LEARNING ADAPTED TO VIRTUALITY
OF BUSINESS MANAGEMENT SL – 5TH

– PEGAGOGICAL UNIT 01 - MDFL N° 2

ANALYSING THE BREAK - EVEN – FIRST STAGE

I. WE GET IN TOUCH AND TAKE ON CHALLENGES

WELCOME DEAR STUDENTS !!

The motivation of the COARs are you dear students of the three learning groups and today I hope
we can share and learn together.

Bear in mind !!

Retrieved From: https://www.yourselfquotes.com/saving-money-quotes/

Now we answer the following question:

Does the breakeven quantity show the profit or loss of a company? Why

OUR LEARNING PURPOSE

We analyze and construct a break-even chart, to then solve a case study
based on a specific context.

EVIDENCE
Case study

OVERVIEW:

1 2 3 4 5
We will explain We will
We know our theoretically about Through develop a case We evaluate and
learning the break – even examples we
study and reflect on what
and the methods will show the
purpose. application of
send it to the we learned.
that exist. teacher
the contents.

1
 The meet, the board in the classroom, the cell phone and instant messaging will be active at all times
to answer questions or queries.

II. WE INVESTIGATE AND BUILD LEARNINGS

Choose and explore two links of the four that we will present to you, where you can find some statements about the break – even ,
then you can SUMMARY in your portfolio what you understood about the balance point.

Source 01

The level of sales or output where costs equal revenue and the firm is
therefore making neither a loss nor a profit. Break-Even Analysis- a
management tool that can be used to serve the purpose of determining the
level of sales that must be generated for a business to earn a profit.

Retrieved from
https://docs.google.com/a/lima.coar.edu.pe/viewer?a=v&pid=sites&srcid=ZGVmYXVsdGRvbWFpbnxicmFja2Vuc2liYnV

Source 02
Break-even analysis tells you how many units of a product must be sold to
cover the fixed and variable costs of production. The break-even point is
considered a measure of the margin of safety. Break-even analysis is used
broadly, from stock and options trading to corporate budgeting for various
projects.

Retrieved from https://www.investopedia.com/terms/b/breakevenanalysis.asp

Source 03

Break-even is the point at which a business is not making a profit or a loss.

Businesses will calculate their break-even point in order to use the
information when making decisions.
Retrieved from https://www.bbc.co.uk/bitesize/guides/zr8947h/revision/1

Source 04

retrieved from https://www.youtube.com/watch?v=r8BIz5I-aDc

Then, based on the same exploration, think and analyze what would be an advantage and a disadvantage of the break-
even . Now we are going to see a presentation about the methods to find the BREAK EVEN and examples.

2
 After gathering information about pricing and fixed
and variable costs, a firm will need to calculate how
many units or what level of output it needs to sell
to cover all its costs.
 This level of output occurs where the total costs
equal the total revenue, which is also known as the
break-even point..
Total costs = Total revenue
 At this point a business will neither make a profit
nor a loss.
 Breaking even is especially important for start-up
businesses or businesses engaging in new ventures
to establish the minimum number of products they
need to sell to cover all their costs.

Table of costs and revenues method Graphical method Formula method

Table of costs and revenues method

 The following table shows the cost and revenue data for a hamburger stall at a Premier League football
match.
 The stall has to pay the club $500 for each match day – these are the fixed costs.
 Each hamburger costs $1 in ingredients and labour (variable costs) and they are sold for $2 each.

Quantity Fixed Variable Total Revenue Profit / (Loss)

sold costs ($) costs ($) costs ($) (Price x ($)
quantity) ($)
0 500 0 500 0 (500)
 The break-even
level of sales for the 100 500 100 600 200 (400)
operator of the
200 500 200 700 400 (300)
hamburger stall is
500 units. 300 500 300 800 600 (200)
 At this level of
sales, total costs 400 500 400 900 800 (100)
equal total revenue.
500 500 500 1,000 1,000 0

600 500 600 1,100 1,200 100

700 500 700 1,200 1,400 200

Cost and revenue data for sale of hamburgers

LET´S PRACTICE

Jose Mendoza runs a taxi service in Manila, Philippines. The average price charged to customers is
330 pesos. Its fixed costs are 6 400 pesos, and the average cost of each journey is 130 pesos. The
average number of taxi Journeys each month is 66.

 Calculate the break –even quantity using Table of costs and revenues method.

3
 The graphical method

 The graphical method involves the break-even chart.

 The chart requires a graph with two axes. The vertical axis has Fixed costs (FC) need to be paid no matter what level of output
the costs and revenue on it and the horizontal axis shows the and, because they are constant at these levels, they are
level of output.. represented by a horizontal continuous line

With no units of output  Since fixed costs still have to be paid with no output produced,
there will be no variable the total cost (TC) line begins where the fixed cost (FC) line starts.
costs (VC). Therefore,
 Importantly, it follows the same trend as the VC line.
the VC line starts from
zero (origin).
The higher the number
of units produced the
higher the variable
costs will be
The total variable costs
are found by
multiplying the number
of units produced by
the variable cost per
unit.
In most cases, the VC line may
not be included in the break-
even chart.

 With no  The break-

output sold even point is
there will be no the point
revenue. where the TC
line
 Therefore,
intersects
the total with the TR
revenue (TR) line.
line begins  At this point
from the origin the break-
(zero). even
 The greater revenue/cos
the number of ts as well as
the break-
units sold the
even level of
greater the output can
total revenue be read from
will be. the graph.

4
  The left of the break-even point shows the loss made by a firm, whereas the right of this point shows the profit obtained.

MARGIN OF SAFETY

 Businesses may need to know how much output they need to produce beyond the break-even point as well
as how much output or sales could fall before a loss is noted.
 A measure of the difference between the break-even level of output and the actual (current) level of output
is known as the margin of safety.
 It is the range of output over which profit is made.
 The greater the difference between the break-even quantity and the sales levels, the greater the safety net
or the safer a firm will be in its profit earnings.

5
 Margen de seguridad = Producción actual – Punto de equilibrio
Tread-it is a manufacturer of hiking shoes. Play-it produces wooden toys for children. Cost and revenue data for
both businesses are shown in the table below.
 Unit variable costs : $10
 Total Fixed Costs per week : $1,000
 Price : $15.
 Quantity : 50
 Current output : 300
Steps to solve:
1. We créate and label the table
Quantity Fixed costs ($) Variable costs ($) Total costs Revenue (Price Profit /
sold ($) x quantity) ($) (Loss) ($)

BREAK 0 1,000 0 1,000 0 (1,000)

EV EN 200
50 1,000 500 1,500 750 (750)
BREAK
EVEN
100 1,000 1,000 2,000 1500 (500)

150 1,000 1,500 2,500 2,250 (250)

200 1,000 2,000 3,000 3,000 0

250 1,000 2,500 3,500 3,750 250

300 1,000 3,000 4,000 4,500 500

Costs / TR TC
Revenue
Break even
4,000
Profit

3,750

Loss 2,000

1,000 FC

100 Q = 200
Output/Sales

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 Costs / TR TC
Revenue
Break even

3,750
50

Safety
FC
margin

200 300
Output/Sales

Margin of safety = Current output – Break even output

= 300 -200
= 100

We return to the question:

Does the break even show the profit or loss of a company? Why?
It seems to you if we give an answer where we must include at least three of the following terms:

7
 II. WE TRANSFER AND SELFASSESS

DuffJD
DuffJD DuffJD provides a laundry service for towels and sheets to three hotel chains in a major city,
Hoyluk. It provides each hotel chain with trade credit.
Competition in this market is increasing, as two rivals are planning to offer laundry services to hotel
chains in Hoyluk.
Table 1: Selected financial data for DuffJD for 2018
Annual fixed costs $75 000
Variable costs per item $0.50

Price charged per item laundered $2.00

Number of Items laundred 200 000

[Source: © International Baccalaureate Organization 2019]

(a) Draw a fully labelled break-even chart for DuffJD for 2018 using the data provided. [20 puntos]

CHECKLIST
COMPETENCE: Manages social economic entrepreneurship projects.

LEARNING PURPOSE : We analyze and construct a break-even chart, to then solve a case study
based on a specific context
EVIDENCE: Case study : DuffJD
CRITERIA EVIDENCE IN PROGRESS NO EVIDENCE MARKS
(2 Marks) (1 mark) (no marks) AVAILABLE
Complete the table with the
Table

necessary operations.
Locate the break even.
Plot the "x" axis of Income and
costs.
Plot the "Y" axis of quantity.
Plot the total Revenue line.
Break even chart

Plot the Total Cost Line.

Plot the Total Fixed Costs.
Label the income and cost
lines.
Correctly label the income and
cost lines.
Indicates the break even in a
prominent way .

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 III. REFLEXIONAMOS NUESTROS RESULTADOS

Mark on the face that best suits how you felt:

STAGE

Managing the time.

With the use of meet platform

With class activities.

With the resolution of the case.

With the class in general.

Do you have any question?

IV. BIBLIOGRAPHIC REFERENCES AND RESOURCES

● Lominé, L., Muchena, M., & Pierce, R. (2014). Business management course companion. United
Kingdom: Oxford.
● Programa del Diploma IB. (2016). Guía de Gestión Empresarial. Programa del Diploma IB.
● Smith, A. & Stimpson, P. (2016). Business Management for the IB Diploma. Cambridge University
Press.
● Bracken's IB Business (2012). Break Even Analysis. Recuperado de
https://sites.google.com/site/brackensibbusiness/units/finance/5-3-break-even-analysis
02/03/2021.
● Hayes, A. (2020). What Is a Break-Even Analysis?. Investopedia. Recuperado de:
https://www.investopedia.com/terms/b/breakevenanalysis.asp. 02/03/2021.
● The Finance Storyteller (2020). Break even analysis. Recuperado de
https://www.youtube.com/watch?v=r8BIz5I-aDc 02/03/2020.

RECURSOS DE SOPORTE PARA EL DOCENTE Y EL ESTUDIANTE

● Cuaderno de trabajo ● Laptop o PC
● Portafolio ● Internet
● Lapiceros ● Cuaderno de apuntes
AUTHORSHIP
COAR CUSCO & COAR LIMA PROVINCIAS (2020). Methodological Design for Learning Adapted to Virtuality:
“Analyzing the break-even First Stage” – Unit 1, Session N° 01

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 MDFL Nº03
METHODOLOGICAL DESIGN FOR LEARNING ADAPTED TO VIRTUALITY OF BUSINESS
MANAGEMENT SL – 5TH– PEDAGOGICAL UNIT N° 1- MDFL N° 03

MDFL Nº03: WE ANALYZE THE BREAK-EVEN POINT PART 2

I. WE GET IN TOUCH AND TAKE ON CHALLENGES

¡Hello!
Welcome dear students.
Thank you for being part of the virtual classroom and reviewing the digital or printed
information you have received from your COAR teacher.

Remember: "The entrepreneur always searches for change, responds to it, and
exploits it as an opportunity." - Peter F. Drucker, (1909 - 2005), Author and business
Teacher

Dear student, last class we talked about the break-even point, but do we know what effect changes in costs
or prices have on the break-even point? If you don't have a definite idea about it, don't worry. In this session
we will address the topic of break-even analysis. The purpose of this session is to apply technical skills to
calculate the break-even point and the effects of cost and price changes on the break-even point, and thus
understand the functioning of the economic and financial system for decision making. The evidence to be
delivered will be a case study, but first we will develop the following activities:
❖ First, we’ll answer the questions posed.
❖ Second, you’ll review the theoretical material and the solved examples.
❖ Third, you’ll answer some questions raised for the session.
❖ Fourth, in plenary we’ll solve some doubts and queries about it.
❖ Fifth, you’ll solve the evidence ( study case to be presented).
❖ Sixth, we’ll reflect on our learning.

Then answer the following questions: What are the methods used to calculate the break-even
point? What are the advantages and limitations of break-even analysis?
If you have any questions, please feel free to contact me, I will be glad to help you. (teacher's
cell phone: 901854178/ email: nadia.yaranga@junin.coar.edu.pe)
If you have any questions you can count on me, I’m here to help.

II. WE INVESTIGATE AND BUILD LEARNINGS

We now independently review the following information to learn how to use the
formula method, the effects of price and cost changes, and the benefits and
limitations of break-even analysis.

THE FORMULA METHOD

The use of the formula to calculate the break-even point (BEP) can be used to provide more accurate
results. The analysis can be used as a strategic tool for decision making. For example, when deciding on
investment projects, the relocation of a factory or a merger with another company.

1
To understand this method, let's remember that the contribution allows us to determine how much a product
contributes to the fixed costs and profit of a business, after subtracting the variable costs. It can be used to
calculate how many products need to be sold to cover the company's costs. It is not the same as business profit.

The total contribution is calculated when more than one unit is sold. It is obtained by subtracting total variable
costs from total sales revenue.

Alternatively, the total contribution can be calculated by multiplying the contribution per unit by the number of
units sold.

Therefore, the contribution per unit refers to the difference between the selling price and the variable cost per
unit..

The break-even point is where revenues equal costs.

𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 (𝑇𝑅) = 𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡𝑠 (𝑇𝐶)
P(Q) = TFC + VCu(Q)
That is to say:
P(Q) - VCu(Q) = TFC
Q (P-VCu) = TFC
Q = TFC/(P-VCu)
The break-even point is determined by dividing the total fixed
costs by the contribution margin
𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠
𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 =
𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡

P = Selling price = The final value of the products to be marketed or the service to be provided.
Q = Number of units sold = The quantity of goods produced and sold by a company
VCu = Variable cost per unit = It is the production cost associated with each unit of what is produced or the service
provided.
TVC = Total variable costs = Total production cost, varies according to the volume of production and sales, or any
other measure of activity.
TFC = Total fixed costs = These are the costs incurred for a period, and are not affected by fluctuations in the
activity levels of a business.

El ingreso en el punto de equilibrio The break-even revenue is obtained at the point where the total revenue
equals to the total costs. It is the revenue required to cover both the fixed and variable costs in order for a firm to
break even. At this point, the break-even revenue is equal to the break-even costs.

𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠
𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 = 𝑥 𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡
𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡
Profit or loss: The break-even chart showed that any sales that exceed the break-even quantity generate
Profit for a business, while sales that are less than the break-even quantity lead to losses. Profit or loss can be
calculated using the following formula:

2
EXAMPLE
A shirt retailer incurs fixed costs amounting to $3,000 a month. The variable cost per shirt is $12 and the
selling price for each shirt is $22.
𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠
𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 =
𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡
3000
𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 = = 300 𝑠ℎ𝑖𝑟𝑡𝑠
22 − 12
𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 (𝑇𝑅) = 𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡𝑠 (𝑇𝐶)
𝑃 𝑥 𝑄 = 𝑇𝐹𝐶 + 𝑇𝑉𝐶
22 𝑥 𝑄 = 3000 + (12 𝑥 𝑄)
10 𝑥 𝑄 = 3000
𝑄 = 300 𝑠ℎ𝑖𝑟𝑡𝑠
Interpretation: Profit or loss: The break-even chart showed that any sales that exceed the break-even quantity
generate profit for a business, while sales that are less than the break-even quantity lead to losses. Profit or
loss can be calculated using the following formula:
𝑃𝑟𝑜𝑓𝑖𝑡 = 𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 (𝑇𝑅) − 𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡𝑠 (𝑇𝐶)
𝑃𝑟𝑜𝑓𝑖𝑡 = (𝑃 𝑥 𝑄) − (𝑇𝐹𝐶 + 𝑇𝑉𝐶)
EXAMPLE
Assuming the shirt retailer sold 1,000 shirts a month, the profit per month would be calculated as follows:
𝑃𝑟𝑜𝑓𝑖𝑡 = 𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 (𝑇𝑅) − 𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡𝑠 (𝑇𝐶)
𝑃𝑟𝑜𝑓𝑖𝑡 = (𝑃 𝑥 𝑄) − (𝑇𝐹𝐶 + 𝑇𝑉𝐶)
𝑃𝑟𝑜𝑓𝑖𝑡 = (22 𝑥 1000) − [3000 + (12 𝑥 1000)]
𝑃𝑟𝑜𝑓𝑖𝑡 = 7000
Interpretation: The shirt retailer would therefore be making a profit of $7,000 on selling 1,000 shirts a month.
What would be the profit or loss if in another month only 200 shirts were sold, assuming the price and other
costs remain constant?

Required production = +

Required production = -------------------------------------------------------

3
EXAMPLE Nº1:
A bicycle producer has fixed costs amount to $2,500, variable cost per unit is $70, price per bicycle is $120,
and the target profit is $1,500.
𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠 + 𝑇𝑎𝑟𝑔𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡
𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 =
𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡

2500 + 1500
𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 =
120 − 70

𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 = 80 𝑏𝑖𝑐𝑦𝑐𝑙𝑒𝑠

Interpretación: Nuestro fabricante deberá producir y vender sus 80 primeras bicicletas a un precio de $120
sin otorgar descuentos, de este modo logrará alcanzar su objetivo de ganancias de $1,500. Sin embargo, en
el día a día de un emprendedor este escenario es difícil de materializar (limitaciones del punto de equilibrio).

EXAMPLE Nº2:
Assuming that the bicycle producer’s fixed costs remain at $2,500, contribution per unit is $50 and the target
profit output is now 100 bicycles, what is the target profit?

𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠 + 𝑇𝑎𝑟𝑔𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡

𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 =
𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡

2500 + 𝑇𝑎𝑟𝑔𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡

100 =
50
Interpretación: Teniendo en cuenta la información brindada podemos deducir que nuestro fabricante tiene
como objetivo de ganancias $2,500, que será el beneficio económico que logrará después de producir y vender
100 bicicletas al precio y costo definidos en el ejemplo.

EXAMPLE Nº3:
If the fixed costs remain at $2,500, the variable cost per bicycle is $50, the target profit $6,500 and the target
profit output is 200 bicycles, what is the target price?
𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠 + 𝑇𝑎𝑟𝑔𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡
𝑇𝑎𝑟𝑔𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡 𝑜𝑢𝑡𝑝𝑢𝑡 =
𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡

2500 + 6500
200 =
𝑇𝑎𝑟𝑔𝑒𝑡 𝑝𝑟𝑖𝑐𝑒 − 50

𝑇𝑎𝑟𝑔𝑒𝑡 𝑝𝑟𝑖𝑐𝑒 = 95 𝑝𝑒𝑟 𝑏𝑖𝑐𝑦𝑐𝑙𝑒

BREAK-EVEN REVENUE: The break-even revenue is obtained at the point where the total revenue equals to
the total costs. It is the revenue required to cover both the fixed and variable costs in order for a firm to break
even. At this point, the break-even revenue is equal to the break-even costs.
𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠
𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 = 𝑥 𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡
𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡

4
EXAMPLE N°04
Using the example of the bicycle producer, if the price per bicycle is $120, variable costs are $70 and fixed
costs are $2,500, what is the break-even revenue?
𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠
𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 = 𝑥 𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡
𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡
2500
𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 = 𝑥 120
120 − 70
𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 = 6000
EXAMPLE Nº5:
Let's now an example: Arabella S.A. produces youth shirts and it has been proposed to reach a profit of S /.
1,500 in December. The variable cost of the t-shirts is S / .25 and their price is S / .40, if their fixed costs
amount to S / .900, answer:
1. What is the breakeven point?
2. What is the income at breakeven?
3. What is the production required to reach your profit target?

SOLUTION:
Problem data: Price (P) = 40; variable cost per unit (VCU) = 25; total fixed cost (FC) = 900. The contribution
per unit (CU) is the unit Price less the variable cost per unit, in other words: 40-25 = 15; so:

1. The breakeven point is : FC/CU = 900/15 = 60

When selling 60 shirts you reach the breakeven

2. The revenue in the breakeven point is : Q*P = 60x40 = S/.2400 (where Q is quantity in the
breakeven point. The revenue in the breakeven
point is S/.2,400.

3. The required production is : (FC + TP)/CU = (900 + 1500)/15 = 160.

It is required to sell 160 shirts to make a profit of
S/.1500

QUESTION: If you have defined a profit objective and you also know what your production capacity is, could
you define at what price you should sell your products?
Returning to the previous example: Suppose that Arabella S.A. You can only produce 120 shirts per month,
at what price should you sell them to reach the same profit target of S/. 1,500?

SOLUTION:
Recall that contribution per unit (CU) is: price (P) - variable cost per unit (VCU). The price in this case is
what we want to calculate:
Fixed cost + Target profit FC + TP
Required production = =
Contribution per unit P - VCU
120 = 900 + 1500 -= 2400
P – 25 P - 25
120*(P – 25) = 2400
P – 25 = 20
P = 45
Interpretation: If it can only produce 120 shirts, Arabella must sell them for S/.45 to reach its profit target of
S/.1500

5
 EFFECTS OF CHANGES IN PRICE AND COSTS
The break-even chart can be used as a helpful decision-making tool as it can show the impact on break-even
quantity, profit, and margin of safety as a result of any changes in price or cost. The new position after the
changes can then be compared with the previous position to provide future direction in the business.

Costs
TR2 TR1
CHANGES IN PRICE:
TC
An increase in price leads to a shift of the total
revenue line from TR1 to TR2. This indicates that
the sales revenue has increased at all levels of
output. The firm will also break even at a lower
level of output and there will be higher profits. This
can also leads to an increase in a firm’s margin of
safety.
Q Q Output / Sales

Costs /
TR1 TC2
CHANGES IN COSTS
TC1
INCREASE IN FIXED COSTS:
R2 = C2
An increase in fixed costs (FC1 to FC2) leads to an
upward parallel shift of the total cost line from TC1
to TC2. An increase in fixed costs leads to an increase
R1 = C1
in total costs by the same amount. Break-even
FC2
quantity also increases and profits decrease. This
FC1
also decreases the margin of safety.

Q1 Q2 Output / Sales

Costs
TR1 TC2
TC1 INCREASE IN VARIABLE COSTS:
An increase in variable costs increases the gradient
R2 = C2 of the total cost line. This is shown by the shift of
the total cost line from TC1 to TC2. This leads to a
R1 = C1
rise in the break-even quantity and reduces the
margin of safety.

Q1 Q2 Output / Sales

EXAMPLE
A chocolate business is evaluating which of the following two prices it should charge its customers for
chocolate:
A $1.50 B $2.00
The following information is helpful in making the decision:

6
 ▪ Fixed costs: $100,000.
▪ Variable cost per chocolate: $1.
▪ Current production: 300,000 chocolates.
For each price calculate:
a) The break-even point
b) The safety margin
c) The profit or loss

If the variable cost per chocolate increases to $1.20, recalculate parts (a) through (c). Given this new situation
recommend what price the business should charge.

ANSWER IF THE VARIABLE COST PER CHOCOLATE

INITIAL SITUATION INCREASES TO $ 1.20
Price A
Price A Break-even point = 100000 = 333333
Break-even point = 100000 = 200000 1,5-1,2
1,5-1 Margin of safety=300000-333333=33333
Margin of safety=300000-200000=100000
Profit= Total revenue (TR)–Total cost (TC)
Profit= Total revenue (TR)–Total cost (TC) Profit=(P x Q) – (TFC + TVC)
Profit= (P x Q) – (TFC + TVC) Profit=(1,5 x 300000) - (100000+(1,2 x 300000))
Profit= (1,5 x 300000) - (100000+300000) Profit=-10000
Profit=50000 Remember that when profit is negative, we are
actually talking about a loss. So the company is
Price B losing 10,000.
Break-even point = 100000 = 100000
2-1 Price B
Margin of safety=300000-100000=200000 Break-even point = 100000 = 125000
2-1,2
Profit= Total revenue (TR)–Total cost (TC) Margin of safety=300000-125000=175000
Profit= (P x Q) – (TFC + TVC)
Profit= (2 x 300000) - (100000+300000) Profit=Total revenue (TR)–Total cost (TC)
Profit=200000 Profit= (P x Q) – (TFC + TVC)
Profit= (2 x 300000) - (100000+(1,2 x 300000))
Profit=140000

HOW SHOULD I RESPOND IF THE TERM OF INSTRUCTION ASKS ME TO

RECOMMEND? Remember the instructional term Recommend involves presenting a
course of action, along with appropriate supporting evidence or reasons, in relation
to a particular situation, problem, or issue.

If the unit variable cost per chocolate increased to $ 1.20, the chocolate business
should charge $ 2 per chocolate. Because with the price of $ 2 dollars the breakeven
point is 125,000 units, while when the price is $ 1.50 dollars the breakeven point is
higher, being 333,333 units. Furthermore, the breakeven point is the level of
production where the total costs are equal to the total revenues and a lower break-even point is easier to
exceed and is convenient for the entrepreneur. So in this case, with the price of $ 2, the businessman would
be earning when he begins to produce 125,001 units of chocolates. In addition, the margin of safety in the
price of $ 2 is greater than the margin of safety with the price of $ 1.5 dollars, being in the first case 175,000
and in the second case 33,333. On the other hand, profit is greater with the price of $ 2 dollars, being

7
140,000; while by charging only $ 1.50, the profit would only be 10,000. Finally, after analyzing the
breakeven point, margin of safety and profit with each price, it can be recommended that the business
charge the price of $ 2 per chocolate.

Benefits of break-even analysis

❖ Break-even charts provide an easy and visual means of analysing a firm’s financial position at various
levels of output.
❖ At a glance, by using the charts, the management of a business is able to determine the profit or loss,
margin of safety, break-even quantity, and break-even revenue or cost.
❖ Formulae can also be used to give more accurate results when calculating the above.
❖ Changes in prices and costs and their impact on profit or loss, break-even point, and margin of safety can
be compared by using the charts or by calculation.
❖ Break-even analysis can be used as a strategic decision-making tool such as deciding on key investment
projects or whether a business should relocate or merge with another firm.
Limitations of break-even analysis
❖ Break-even analysis assumes that all the output produced by firms is sold with no possibility of stocks
being built up or held. In reality, many businesses may hold stocks to cater for any sudden changes in
demand. Stocks may also build up because goods cannot be sold.
❖ It assumes that all revenue and cost lines are linear, i.e. represented by straight lines. This is not always
the case. Offering price reductions or discounts will influence the slope of the revenue line. The slope of
the variable cost line will also change if a firm pays overtime wages in an effort to increase output. This
change will then influence the slope of the total cost line.
❖ Apart from showing fixed and variable costs, semi-variable costs are not represented on the break-even
chart. If these are included, it makes the process more complex.
❖ A break-even chart may not be very useful in changing or dynamic business environments. For example,
the break-even chart may not cope with sudden changes in prices, costs, or technology.
❖ The accuracy and quality of the cost and revenue data used determine the effectiveness of break-even
analysis. Unreliable or inaccurate data may influence the conclusions reached in the overall analysis.
❖ Fixed costs may change at different levels of activity. It would be preferable to represent these fixed costs
as a “stepped” line. For example, in order to increase output a firm may need to double its capacity. This
may lead to sharp rises in fixed costs, thereby complicating break-even analysis.

Activity-1: In the following link (https://forms.gle/ZBYfxmqoBHa6dPyVA) we will test what we have

understood so far, in case of not being able to access the link the questions are lines below. Avoid seeing the
theoretical content and solve it yourself. Cheer up, you can! Remember this activity is not the evidence to
present, it is only for contrasting what you have learned so far.

LET'S PUT INTO PRACTICE WHAT WE HAVE LEARNED!

If you wish, you can watch the following video to reinforce what you have learned before answering the
questions.

Web Page: https://www.youtube.com/watch?v=zKQtE7nXRrw

8
 VIDEO TRANSCRIPT
What is the Break-even Point?
Good morning everyone, I am Javier Gutiérrez,
founder of Tacos Javier, a company that packages
and distributes this delicious food in our country.
After a year in business I need to know what my
breakeven point is to determine the possible profits
I get from selling my product, they help me calculate
it.
To begin, I will give you a brief explanation telling
you that it is the breakeven point, it is a financial tool
that determines the point where the total income
received is equal to the costs associated with the
sale of a product. It should be noted that to calculate
it it is necessary to identify the behavior of fixed
and variable costs. To calculate the breakeven point
in units, I must divide the total fixed costs for a
month by the unit sales price minus the unit variable
cost. The result of this operation is the amount of
goods that you must sell in order not to lose or win,
that is, the breakeven point, but let's go to practice.
Let's see my total fixed costs for the month are 50
thousand soles in the numerator.
The unit sale price of my product is 12 soles and my
unit variable cost is 6 soles and they go in the
denominator, therefore 12 minus 6 is equal to 6. The
50,000 of my total fixed costs for the month are
divided by 6 having as a result 8333.33 products.
This means that by producing 8333.33 units of tacos
I am covering all my costs and expenses, therefore I
neither win nor lose. This is known as the zero point.
Thanks to these calculations I already know that
above 8333.33 units of tacos sold I will be generating
profits and below this amount I will be losing money.
So I should review my business strategy and identify
the problem. Thank you very much for your attention,
see you do not stop coming to try the tacos of Peru.
UPC (2018)
QUESTIONS:
1. What is the breakeven point?
A. Financial tool that determines the point at
which the total income of a business is equal
to the costs associated with the sale of the
product or service.
B. Accounting tool that determines the point at
which the total income of a business is equal
to the costs associated with the sale of the
product or service.
C. Financial tool that determines the point at
which the partial income of a business equals
the fixed costs of a product or service.
D. Financial tool that determines the point at
which the total revenue of a business equals
the variable costs of the product or service.
2. It can be used to provide more accurate results
and its analysis can be used as a strategic tool for
decision making.
A. The table method
B. The graphical method
C. The cost method
D. The formula method
3. What is the contribution margin?
A. It is the profit of the business.
B. It is one that allows us to determine how
much a product contributes to the variable
costs and profit of a business, after
subtracting the fixed costs.
C. It is one that allows us to determine how
much a product contributes to the fixed costs
and profit of a business, after subtracting the
variable costs.
D. It is the total sales of a product or service.
4. How is the total contribution found?
A. Subtracting the total fixed cost from the total
sales revenue.
B. Subtracting the total variable cost from the
total sales revenue.
C. Subtracting the total fixed and variable cost
from the total sales revenue.
D. Subtracting the total variable cost from the
total fixed costs
5. What are the limitations of break-even analysis?
A. The analysis assumes that all products are
sold without having to be stored.
B. The graph would not be very useful in very
dynamic or changing environments.
C. The precision and quality of the information
used determines the effectiveness of the
analysis.
D. All of the above
9
 Answer Key: Remember: This activity is not graded but it will
1. A 2. D 3. C 4. B 5.D help you to self-evaluate. ♪♫
III. WE CONCLUDE THE UNDERSTANDINGS
In plenary or by phone we will answer the following questions. This activity does not
require a product or task, it is only to clarify the concepts and knowledge developed in
this learning session.

Now that you have analyzed the information, we will answer the following questions by looking at the image
on the left:
CHANGES IN COSTS:

1. What happened to the breakeven point when the total cost

from TC1 increased to TC2?
2. What could happen if the margin of safety is small?
3. What would happen to the breakeven point if the total cost
TC1 were reduced?

CHANGES IN THE PRICE:

1. An increase in the price generates an increase in the income
What happened to the breakeven point when the income TR1
increased to TR2?
2. What effect does it have on the margin of safety?
3. What would happen to the breakeven point if the total revenue
(TR) were reduced?

IV. WE TRANSFER AND SELF-EVALUATE

Activity-2: Solve the following Business Management case study (Evidence to present):
CASE STUDY
A chocolate business is evaluating two possible locations for a new
industrial plant in the city of Genoa.

The following information is useful in making a decision:

● Fixed monthly costs of location A: $ 100,000
● Fixed monthly costs of location B: $ 150,000
● Variable unit cost of chocolate: $ 3
● Current monthly production: 150,000 chocolates, in batches of 10,000 units.
● Estimated retail price: $ 5.
FOR EACH LOCATION CALCULATE:
A. The point of balance
B. Income at breakeven.
C. The margin of safety
D. Profit or loss
To rent location B, the business must have a profit target of $ 450,000 per month.

10
CALCULATE:
● The production required to achieve the profit target.
● The price you would have to charge to achieve the profit target at a capacity of 200,000 units.
RECOMMEND: To which premises should the company rent if the variable cost for chocolate increases to $
4, argue based on your results.
Next, I will let you know the instrument and the criteria with which you will be evaluated.
ASSESSMENT SCALE

Competence O
u
E
t P
x
s r S
p
t o t
e
a c a
c
n e r
Evaluation criteria Indicators t
s t
Score
d
e
i s
d
n
g

4 3 2 1

Manages social
economic Applies quantitative methods from the
entrepreneurship business environment to calculate the
projects. breakeven point in simulated situations.

Applies quantitative methods from the

business environment to calculate equilibrium
income in simulated situations.
Apply technical
skills
Applies quantitative methods from the
business environment to calculate profit or loss
in simulated situations.

Applies quantitative methods from the

business environment to calculate the
production required to achieve profit
objectives in simulated situations.

Responsible Understand the

management of functioning of the
financial resources economic and Recommends strategies based on the options
financial system presented by the economic and financial
system to solve problems in real or simulated
Make economic and situations of a company.
financial decisions

V. WE REFLECT OUR RESULTS

Activity-3: Let's evaluate how this session went. Reflect on the following:
1. Which of the strategies used helped you better understand the subject?
2. Were the readings understandable?
3. How did you feel working remotely?
4. Are you satisfied with today's class session?
5. What reflection have you reached after this session?

11
 VI. BIBLIOGRAPHIC REFERENCES AND RESOURCES
BIBLIOGRAPHIC REFERENCES
● Lominé, L., Muchena, M., & Pierce, R. (2014). Business management course companion. United
Kingdom: Oxford.
● Programa del Diploma IB. (2016). Guía de Gestión Empresarial. Programa del Diploma IB.
● Smith, A. & Stimpson, P. (2016). Business Management for the IB Diploma. Cambridge University
Press.
● UPC (08/10/2018) ticeonlinechannel. https://www.youtube.com/watch?v=zKQtE7nXRrw

SUPPORT RESOURCES FOR THE TEACHER AND STUDENTS

● Work notebook ● Laptop or PC

● Notebook ● Internet
● Pencils ● Work notebook
I. AUTHORSHIP
Ponce, J. & Yaranga, N. (2021). Methodological design for learning adapted to virtuality: “We analyze the break-even
point Part 2” – Unit 1, Session N° 03

12
 METHODOLOGICAL DESIGN FOR LEARNING ADAPTED TO VIRTUALITY OF BUSINESS
MANAGEMENT SL – 5TH

PEDAGOGICAL UNIT N° I

MDFL N° 1: Written commentary

Criterion B: Choice and application of tools, techniques and theories

1. WE CONTACT AND TAKE ON CHALLENGES (8 min)

Good morning!, my dear students, I hope you are very well, today you
will learn about the selection and application of tools, techniques and
theories for your written commentary. I invite you to answer the
following questions:

How did the research question posed in the previous class go?
How far your written commentary advanced?
How did the choice of supporting documents go?

I challenge you to reflect on the following:

What tools, techniques and theories of Business Management do you know?

Why is the use of tools, techniques and theories so important when preparing the
written commentary?

Would it be possible to perform a good level of analysis, evaluation, discussion and

conclusions without using Business Management tools, techniques and theories?

Learn about the purpose of this session, as well as the transversal competencies, evidence and
evaluation criteria you will develop:

1

• Indicate which business
tools you will use in your
written commentary.
• Justify the tools, theory and
technique of business
management.
Transversal Evaluation
competencies •Advance to criterion B of criteria
your written commentary
• Manage their learning • Understand and apply
autonomously. business management
• It operates in virtual knowledge and tools in real
environments generated by or simulated situations.
the TIC.

Purposes Evidence

You need to follow the following steps to make the evidence for this session:

Step 1.- 15 min Step 2.- 10 min Step 3.- 20 min

•Cite (using APA
• Select 2 or 3 • Briefly describe standards) the
resources (among which part of concept of a tool,
tools, techniques these you will technique or
and theories) that prioritize to theory that you
you will use for answer your will use in the
the elaboration research question development of
of your Written and indicate how your written
Commentary. they will be linked commentary and
together apply it in a way
that clarifies the
situation of the
organization you
have chosen.

Writing the Written Commentary is similar to making a fruit smoothie; consider that writing
a good commentary (Band 6-7) requires tools, techniques and theories (just as a smoothie
requires fruit, honey, carob, etc). And just as you remove the seeds and the peel, you will
have to select the part of the tools that is useful to nourish your written commentary.

And just as you combine the fruits in the blender bringing their flavors and nutrients in a
harmonious blend, the tolls, technical and theories will have to relate to each other to
answer with sufficient depth to the research question of your Written Commentary.

2
 Young people the realization of the written commentary is tedious at the
beginning, after you become familiar with the objectives we want to achieve,
it will become simple, but you have to manage the time with a lot of
responsibility and thus avoid that all the works are put together in the last
weeks of presentation.

Also, remember that I am at your disposal to answer

your calls and messages from 5:00 pm to 5:30 pm
and by the classroom board or by meet during class
hours. During these hours you can let me know your
doubts and concerns regarding the topic covered in
class.

2. WE INVESTIGATE AND BUILD LEARNING (45 min)

LET'S START WITH THE DEVELOPMENT OF THE SESSION

Find a space where you can carry out your activities in peace and quiet.

Activity 01: With the information from your supporting documents, start researching
the following tools, techniques and theories shown in the table, in order to learn about
them and describe which of them are associated with your research question:

TOOLS TECHNIQUES THEORIES

SWOT Matrix - STEEPLE - Ishikawa - Observation - Leadership styles
Diagram - Decision Tree - Ansoff Matrix -
- Mitzberg's managerial roles
Lewin's Force Fields - Porter's 5 Forces - - Survey
Value Chain - Break-even point - Break- - Interviews - Motivation theories: Mazlow,
even point calculation - Financial Herzberg, Pink, Adams,
indicators - Market share - BCG Matrix - - Focus group Blanchard, Goleman
Marketing mix - E-commerce -
- Triple bottom line
Benchmarking - Franchise - Outsourcing
- Kaizen

You should know that you can only choose between two or three tools that have to
do with your research.

3
Modeling analysis:
Activity 02: Read the following example of a commentary written by NM:
How efficient has Uniqlo's decision to develop its distribution channels (Ariake Project) been
to increase its profits between 2017- 2018?

I. INTRODUCTION

Fast Retailing is the parent company of the Uniqlo brand, which focuses on clothing retail,
although in this world there are many clothing brands, this one has been able to position itself
in the market. Fast Retailing (2018) states "The brand differentiates itself from others due to its
offering of clothing made from high-quality materials at reasonable prices, and developing
products using original high-performance fabrics such as HEATTECH and Ultra Light Down" (p.
2). Despite competing with Zara and H&M, its importance within the market in its country of
origin, Japan, is evident, in which it has achieved profits in billions of yen, in addition to a growth
in its international sales. The strategy used by Uniqlo is the expansion and development of its
distribution channels through innovation in the technology used. According to the CEO's
message in Fast Retailing (2018) "We decided to create a new industry based on information as
a digital consumer retail company". What he demonstrates through the creation of Ariake
project, implemented with the intention of turning Uniqlo into a company that is guided by new
technologies to become a fully digital company. This leads to ask how efficient has been Uniqlo's
decision to develop its distribution channels (Ariake Project) to increase its profits between
2017-2018, which will be developed using a force field diagram, in addition to including Uniqlo's
cost and revenue graphs between the mentioned years, which will be analyzed and directly
related to Ariake Project to assess the efficiency of the decision in generating profits.

II. DATA OBTAINED AND ANALYSIS

2.1 Force Field Analysis

Figure 1.- Uniqlo Company Force Field, 2018.

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 Complete traditional Complete supply chain
supply chain Desired change transformed by Ariake Project

10 /

Driving Forces Restraining Forces

Consumer interest in innovation in the High implementation costs.

distribution system.

Long-term cost cutting or resource consumption Total control of the project is lost by delegating
that would reduce selling prices. responsibility to different companies.

Valuable experience and knowledge from the Disgruntled professionals due to fewer jobs
other companies involved. available.

Leadership by Tadashi Yanai that implies Delay in achieving objectives, thus increasing
confidence in decision making. future expenses.

Risk of not meeting targets due to Uniqlo's high

ambition.

In figure 1, we can see that according to the force field analysis there are some restrictions
that could lead to this plan not being fully efficient due to the amount of resources invested
in this large-scale project that plans to modernize all distribution channels, starting with the
central office in Ariake, which is not fully updated. One disadvantage can be related to
internal stakeholders.
According to Marc (2018) "Uniqlo has been able to cut staff by 90% within its warehouse",
i.e. the available workforce, who would not 7 be able to dispose of jobs because they will be
cut as the project develops; Therefore, Uniqlo should look for some possibility in which these
internal stakeholders do not lose the motivation that is being depleted by the development
of Ariake Project. By choosing to give them certain benefits for having worked in the
company, as well as considering their help in another functional area of the company if
deemed necessary, Uniqlo should not allow the development of its project to become deeply
detrimental to them. However, the driving forces such as the CEO himself guarantee an
efficient implementation of the project, which is complemented by the need of today's
companies to modernize and adapt to the new virtual era, which will be achieved in an
extended period of time, ensuring profitability and exponential revenue growth in the not
immediate future. In addition, this project is not being carried out in isolation; strategic
alliances have been established which, by segmenting the project, will maintain efficiency in
each area covered by the modernization. Therefore, driving forces are identified that can
effectively counteract the restraining forces.

2.1. WE CONCLUDE THE UNDERSTANDINGS ( 45m)

Activity 03: I encourage you to analyze and share your answers:

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  What Business Management tools, techniques and theories are you
familiar with?
 Why is the use of tools, techniques and theories so important when
preparing the written commentary?
 Would it be possible to perform a good level of analysis, evaluation,
discussion and conclusions without using Business Management tools,
techniques and theories?
 What have been your challenges? Do you have any doubts?

Remember the steps you will need to follow to make the evidence for this session:

Step 1.- 15 min Step 2.- 10 min Step 3.- 20 min

•Cite (using APA
• Select 2 or 3 • Briefly describe standards) the
resources (among which part of concept of a tool,
tools, techniques these you will technique or
and theories) that prioritize to theory that you
you will use for answer your will use in the
the elaboration research question development of
of your Written and indicate how your written
Commentary. they will be linked commentary and
together apply it in a way
that clarifies the
situation of the
organization you
have chosen.

Once you have completed your evidence you will need to do the following depending on the
group you are in, so that it can be evaluated today:

G2: upload it to the classroom today in the hours of the class session.

G1: take a photo of your evidence and send it by whatsapp today in the hours of the
class session.

G3: send your file in word by whatsapp today in the hours of the class session.

Likewise, the evaluation criteria are: that you understand and apply knowledge
and tools on business management in real or simulated situations.

3. WE TRANSFER AND SELF – ASSESSMENT (60 min)

GET READY!
It's time for you to demonstrate the knowledge you have learned today.

Perform the following graded activity:

Activity 04: I advise you to follow the following steps to successfully complete your
evidence today.

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 1. Select 2 or 3 resources (among tools, techniques and theories) that you will employ for
the elaboration of your Written Commentary. [5 points]
2. Briefly describe which part of these you will prioritize to answer your research question
and indicate how they are linked among these. [5 points]
3. Cite (using APA standards) the concept of a tool, technique, or theory that you will use in
developing your written commentary and apply it in a way that clarifies the situation of
the organization you have chosen. [10 points]

(The activities outlined here are the only ones that will be graded in this session).

Then, I show you the evaluation scale for Criterion B:

Criterion B: Choice and application of tools, techniques and theories

This criterion assesses the extent to which the student chooses business management tools,
techniques and theories that are relevant to the issue or problem and applies these so that a
greater insight into the situation of the organization ensues.
Level Level Descriptor Scoring Comment
0 The work does not reach a standard described by the
descriptors below.
1 There is a limited selection of business management tools,
techniques and theories, and these are not applied.
2 There is a limited selection of business management tools,
techniques and theories, and these are superficially applied.
3 There is an appropriate selection of business management
tools, techniques and theories, but these are superficially
applied.
4 There is an appropriate selection of business management
tools, techniques and theories, and these are suitably applied.
5 There is an appropriate selection of business management
tools, techniques and theories, and these are skillfully applied.
WE REFLFECT ON OUR RESULTS

Dear student, in this part of the session, I will take two samples of the
submitted works to socialize them and give solutions to the questions
and mistakes made.

Let's see how much we know, let's answer!

1. What fundamental concepts are linked to your research topic?

2. What difficulties did you encounter in selecting the resources (tools, techniques, and theories)
to address your written commentary?
What did you do to overcome your difficulties?
4. What other things can you do when you encounter similar difficulties?

Check the progress of your written commentary using the following table:

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 WRITTEN COMMENTARY PROGRESS CHECKLIST
COMPETENCY ID CHECKLIST RESPONSE REMARKS
1 An appropriate selection of business management YES NO
tools, techniques and theories has been made.
2 The part(s) of the selected tool, technique or YES NO
theory that helps to clarify the organization's
Manages situation has been prioritized.
economic or 3 The relationship between the selected tools, YES NO
social techniques and theories has been well explained
entrepreneurs during their application
hip projects. 4 The selected tool, technique or theory has been YES NO
treated in sufficient depth to shed light on the
organization's situation.
5 The arguments supporting the application of the YES NO
tools, techniques and theories are extracted from
their supporting documents.

5. BIBLIOGRAPHY AND RESOURCES

BIBLIOGRAPHY
‐ Organización del Bachillerato Internacional (2014). Guía de Gestión Empresarial. Primera
evaluación 2016. Cardiff: IBO
‐ Hoang, P. (2013). Business Management (3rd ed.). Melton: IBID Press.
‐ Lominé, L., Muchena, M. & Pierce, R. (2014). Business Management: Course companion.
Oxford: Oxford University Press.
‐ Stimpson, P. & Smith, A. (2015). Business Management for the IB Diploma (2nd ed.).
Cambridge: Cambridge University Press.
‐ Stimpson, P. & Smith, A. (2011). Business and Management for the IB Diploma. Cambridge:
Cambridge University Press.

TEACHER AND STUDENT SUPPORT RESOURCES

‐ Stationery.
‐ Workbooks.
‐ Laptops with internet access.
‐ Electronic presentation and/or printed material.
‐ https://sp.depositphotos.com/vector-images/profesor.html?qview=29477563
‐ https://ar.pinterest.com/pin/203365739409994171/
‐ https://ugeli.wordpress.com/2020/04/17/httpugeli-files-wordpress-
com201309pnejma-2013-pdf/recuerda/
‐ https://ar.pinterest.com/pin/642818546803892212/
‐ https://sp.depositphotos.com/10671905/stock-illustration-funny-cartoon-genius.html
‐ http://www.lourdesmelo.com/s26-dia-2-reflexionamos-sobre-nuestros-aprendizajes-y-
como-nos-hemos-sentido-aprendiendo/

AUTHORSHIP

COAR TUMBES &COAR MADRE DE DIOS (2020). Methodological design for learning
adapted to virtuality: “Written Commentary” – Unit 1, Session N° 04