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Break Even2

The document shows a break even chart for a company with a unit price of $70, unit variable cost of $55, and fixed costs of $110,000. The break even point is achieved at 6000 units, where total costs equal total sales. As units increase from 0 to 24,000, variable costs increase linearly from $0 to $1,680,000 while fixed costs remain at $110,000, and profit increases from a loss of $90,000 to a gain of $270,000.

Uploaded by

Edward Kahwai
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
37 views

Break Even2

The document shows a break even chart for a company with a unit price of $70, unit variable cost of $55, and fixed costs of $110,000. The break even point is achieved at 6000 units, where total costs equal total sales. As units increase from 0 to 24,000, variable costs increase linearly from $0 to $1,680,000 while fixed costs remain at $110,000, and profit increases from a loss of $90,000 to a gain of $270,000.

Uploaded by

Edward Kahwai
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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UNIT PRICE

$70

SALES
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
22000
24000

UNITS INCREMENT
90000

VARIABLE COSTS
0
140000
280000
420000
560000
700000
840000
980000
1120000
1260000
1400000
1540000
1680000

2000
FIXED COSTS

0
110000
220000
330000
440000
550000
660000
770000
880000
990000
1100000
1210000
1320000

90000
90000
90000
90000
90000
90000
90000
90000
90000
90000
90000
90000
90000

Break Even Chart

1800000
1600000
1400000
1200000
Amount

UNITS

UNIT VARIABLE COST FIXED COSTS


$55

1000000
800000
600000
400000
200000
0
0

5000

10000

15000
Units

20000

The break even point is achieved at 6000 units

25000

nits

TOTAL COSTS

PROFIT/LOSS

90000
200000
310000
420000
530000
640000
750000
860000
970000
1080000
1190000
1300000
1410000

-90000
-60000
-30000
0
30000
60000
90000
120000
150000
180000
210000
240000
270000

SALES
FIXED COSTS
TOTAL COSTS

break even point

30000

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