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Break Even Chart

The document provides cost information for ABC Company including fixed costs of $17,000, variable costs of $22,000 per 10,000 units, and a break-even point of 6,071 units at $30,357 in sales. A break-even chart is shown graphically displaying costs, revenue, and profit at different unit levels. The selling price required to reach break-even is calculated as $3.90 per unit using a goal seek tool.

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elsouords
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39 views6 pages

Break Even Chart

The document provides cost information for ABC Company including fixed costs of $17,000, variable costs of $22,000 per 10,000 units, and a break-even point of 6,071 units at $30,357 in sales. A break-even chart is shown graphically displaying costs, revenue, and profit at different unit levels. The selling price required to reach break-even is calculated as $3.90 per unit using a goal seek tool.

Uploaded by

elsouords
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Cost of Goods of ABC Company

Sales Quantity (Unit) 10000


Unit Selling Price $ 5

Fixed Costs
Rent $ 5,500
Salaries $ 10,000
Utility $ 450
Advertising $ 800
Insurance $ 250

Variable Costs
Raw Material $ 8,500
Packaging $ 2,500
Shipping & Logistics $ 3,000
Commissioning $ 8,000
Determining Break-Even Point

Sales Quantity (Unit) 10000


Unit Selling Price $ 5

Total Fixed Cost $ 17,000


Total Variable Cost $ 22,000
Average Variable Cost $ 2
Break-Even Sales Quantity 6071
Break-Even Sales Amount $ 30,357
Do It Yourelf

Sales Quantity (Unit) 7500


Unit Selling Price $ 4.50

Total Fixed Cost


Total Variable Cost
Average Variable Cost
Break-Even Sales Quantity
Break-Even Sales Amount
Break-Even Chart

Unit Fixed Cost Variable Cost Total Cost Revenue Profit


4000 $ 17,000 $ 8,800 $ 25,800 $ 20,000 $ (5,800)
5000 $ 17,000 $ 11,000 $ 28,000 $ 25,000 $ (3,000)
6000 $ 17,000 $ 13,200 $ 30,200 $ 30,000 $ (200)
7000 $ 17,000 $ 15,400 $ 32,400 $ 35,000 $ 2,600
8000 $ 17,000 $ 17,600 $ 34,600 $ 40,000 $ 5,400
9000 $ 17,000 $ 19,800 $ 36,800 $ 45,000 $ 8,200
10000 $ 17,000 $ 22,000 $ 39,000 $ 50,000 $ 11,000
11000 $ 17,000 $ 24,200 $ 41,200 $ 55,000 $ 13,800
12000 $ 17,000 $ 26,400 $ 43,400 $ 60,000 $ 16,600
13000 $ 17,000 $ 28,600 $ 45,600 $ 65,000 $ 19,400

Break-Even Chart
$70,000

$60,000

$50,000

Fixed Cost
Variable Cost
$40,000
Total Cost
Revenue
BEP
$30,000

$20,000

$10,000

$-
3000 5000 7000 9000 11000 13000
Fixed Cost
Variable Cost
Total Cost
Revenue
BEP
Calculating Selling Price at BEP Using Goal Seek Tool

Sales Quantity (Unit) 10000


Unit Selling Price $ 3.90
Fixed Cost $ 17,000
Variable Cost $ 22,000
Total Cost $ 39,000
Revenue $ 39,000
Profit $ -

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