1434095
Break even
- fixed costs
- This doesn't
change with
output
- examples - rent
- Salary
- Salary
- examples - rent
- This doesn't
change with
output
- Variable costs
- example - wages
- this does change with output
- advantages and disadvantages
- sales needed to break even
- advantages
- shows changes of output
- shows changes of output
- disadvantages
- it assumes all output
- the plotting of the points have to be accurate
- the plotting of the points have to be accurate
- it assumes all output
- advantages
- sales needed to break even
- advantages and disadvantages
- raw materials
- this does change with output
- example - wages
- break even analysis
- it shows the point at which
the business to start
making profit
- it can be used to
calculate the sales
needed to make a
profit at any given
price
- a business finds
the break even
point when they
want to make
changes in price
- also given to
work out profit
- it shows the point at which
the business to start
making profit
- table and chart
- step 1 -
complete
the table
- step 2 - plot
fixed costs
- step 3 - plot
variable costs
- step 4 -
plot total
costs
- step 5 - plot sales
- step 6 - when
the lines
(sales&total)
cross this is
the break even
- circle it and draw a line
down to the number
that it goes to
- circle it and draw a line
down to the number
that it goes to
- step 6 - when
the lines
(sales&total)
cross this is
the break even
- step 5 - plot sales
- step 4 -
plot total
costs
- step 3 - plot
variable costs
- step 2 - plot
fixed costs
- step 1 -
complete
the table
- revenue
- this is
how much
the
business
makes
- total revenue
- formulas
- number
of sales
x selling
price
- total cost
- fixed cost + variable costs
- how ICT spreadsheet help us with break even analysis
- if you need to add something the computar will change and do it for you
- a lot more accurate
- also is quicker as it will only take a few seconds
- also is quicker as it will only take a few seconds
- a lot more accurate
- if you need to add something the computar will change and do it for you
- how ICT spreadsheet help us with break even analysis
- fixed cost + variable costs
- profit
- total revenue - total costs
- total revenue - total costs
- number
of sales
x selling
price
- formulas
- this is
how much
the
business
makes
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