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Breakeven Analysis Graph (1)

The breakeven analysis determines that the breakeven point is 40 units, calculated using fixed costs of £2,000, variable costs of £50 per unit, and a selling price of £100 per unit. A table illustrates the total cost, total revenue, and profit/loss at various sales levels, confirming that total revenue equals total cost at 40 units. The breakeven graph visually represents these relationships with lines for fixed cost, total cost, and total revenue.

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WAQAS ASHIQ
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14 views

Breakeven Analysis Graph (1)

The breakeven analysis determines that the breakeven point is 40 units, calculated using fixed costs of £2,000, variable costs of £50 per unit, and a selling price of £100 per unit. A table illustrates the total cost, total revenue, and profit/loss at various sales levels, confirming that total revenue equals total cost at 40 units. The breakeven graph visually represents these relationships with lines for fixed cost, total cost, and total revenue.

Uploaded by

WAQAS ASHIQ
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Breakeven Analysis Graph

solve it step by step and draw

Let's solve the breakeven task step by step.

Step 1: Understanding Given Data

Fixed costs (FC): £2,000 per month


Variable cost per unit (VC): £50
Selling price per unit (P): £100

Step 2: Calculate the Breakeven Point Using the Formula

The breakeven point in units is calculated as:

Fixed Costs
Breakeven Quantity =
Selling Price per Unit − Variable Cost per Unit
​

2000 2000
Breakeven Quantity = = = 40 units
100 − 50 50
​ ​

So, the breakeven point is 40 units.

Step 3: Create a Table for Monthly Data

We will create a table by increasing the quantity in steps of 10 and calculate the corresponding Total
Cost, Total Revenue, and Profit/Loss.

Units Sold Fixed Cost (£) Variable Cost (£) Total Cost (£) Total Revenue (£) Profit/Loss (£)

0 2,000 0 2,000 0 -2,000

10 2,000 500 2,500 1,000 -1,500

20 2,000 1,000 3,000 2,000 -1,000


30 2,000 1,500 3,500 3,000 -500

40 2,000 2,000 4,000 4,000 0 (Breakeven)

Printed using ChatGPT to PDF, powered by PDFCrowd HTML to PDF API. 1/3
Units Sold Fixed Cost (£) Variable Cost (£) Total Cost (£) Total Revenue (£) Profit/Loss (£)

50 2,000 2,500 4,500 5,000 +500

60 2,000 3,000 5,000 6,000 +1,000

At 40 units, total revenue equals total cost, confirming that breakeven is 40 units.

Step 4: Draw the Breakeven Diagram

We will now plot the breakeven graph with:

X-axis: Number of units sold


Y-axis: Costs & Revenue (£)
Lines:
Fixed cost: A horizontal line at £2,000.
Total cost: Starts from £2,000 and increases linearly.
Total revenue: Starts from £0 and increases linearly.
Breakeven point: Where Total Revenue = Total Cost at 40 units.

I will now generate the graph.

Here is the breakeven analysis graph:

Red dashed line (Total Cost): Starts at £2,000 and increases linearly.
Blue solid line (Total Revenue): Starts at £0 and rises as units increase.

Printed using ChatGPT to PDF, powered by PDFCrowd HTML to PDF API. 2/3
Green dotted line (Fixed Cost): A horizontal line at £2,000.
Black vertical line (Breakeven Point at 40 units): Indicates where total revenue equals total cost.

This confirms that the breakeven point occurs at 40 units, where total cost and total revenue intersect at
£4,000. Let me know if you need further clarification!😊 ​

Printed using ChatGPT to PDF, powered by PDFCrowd HTML to PDF API. 3/3

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